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2014 (12) TMI 212 - AT - Income TaxSelection of comparables – CRISIL Ltd. – Held that:- CRISIL Limited was proposed by the assessee itself in its transfer pricing document after considering functional, assets, risk and economic analysis of the comparable company – it has already been held that in case of comparables having different year ending, the same should be ignored – the matter is remitted back for reconsideration of CRISIL Limited as comparable after considering assessee’s contention regarding different year ending being followed by the assessee vis-à-vis CRISIL Limited. ICRA Online Limited – Held that:- The information services segment was used for computation of margin in the transfer pricing study - The assessee itself has used it as a comparable in its transfer pricing study/comparables - Since functionally it is comparable with that of assessee, therefore, assessee’s contention for exclusion of ICRA Online Limited has no merit. In House Productions Limited – Benefit of economic data adjustment and +5% variation - Held that:- Keeping in view the computation of margin and also the activities in which In House Productions Limited is engaged which is stated to be basically healthcare services, not comparable to the assessee, the matter is remitted back to the AO/TPO/DRP for fresh consideration - also, after re-computation, assessee should be considered for benefit of 5% range from the transfer price, if the same falls within + 5% as per the proviso to Section 92C(2). Adhoc disallowance of 25% of foreign travelling expenses – Held that:- The disallowance has been made merely on the plea that evidence has been filed by the assessee on sample basis – after considering the detailed information furnished in the form of statement giving details and purpose of foreign travelling expenses, place of foreign travelling, purpose of visit, name of person visited, amount incurred on travelling, boarding and lodging etc. the observation of the lower authorities were that some of the airways bills were not in the name of assessee company - Keeping in view the nature of assessee’s business vis-à-vis necessity of journey undertaken which was essentially for the purpose of business, the AO is directed to restrict the disallowance to the extent of 10% of the expenditure so incurred in place of 25% made by the lower authorities – Decided partly in favour of assessee
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