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2014 (12) TMI 970 - AT - Income TaxTransfer pricing adjustment - Serviced provided to AE – Selection of Companies as comparables Accel Transmatic Ltd.– E-Zest Solutions - Held that:- Following the decision for all the comparables as decided in M/s. Motorola Solutions India Private Limited Versus ACIT, Circle-2, Udyog Vihar [2014 (10) TMI 358 - ITAT DELHI] - the Tribunal restored the issue to the file of the TPO to consider the inclusion/exclusion of this comparable depending upon the finding of RPT – with regard to E-Zest Solutions the TPO is directed to examine the reply of the assessee and adjudicate the matter afresh. Avani Cimcon Technologies Ltd. – Held that:- The Tribunal directed exclusion of the comparable for the reason that it owns certain softwares developed by it and the revenues earned are not merely on account of development of new software from scratch but because of utilisation of own software also - the asset base of the company could not be compared with that of the tested party. Celestial Labs – Held that:- The Tribunal observed that Celestial Labs is mainly into software development services, in as much as, R&D facilities have been used by it in relation to development of a software for discovery of new drugs - It was engaged in bioforma and biotech manufacturing of customised I.T. solutions, manufacturing of trucks, and contract research activities. KALS Information Systems – Held that:- The Tribunal directed the AO to exclude this comparable on the ground that there is a difference in the asset base of both the companies. Flextronic Software Systems Ltd.- Ishir Infotech Ltd.- Held that:- The Tribunal held that the company cannot include a comparable as there is a clear contradiction in the contents of the annual report and the information obtained u/s 133(6), hence this comparable has to be excluded for the same reason. Sasken Communication Technologies Ltd. – Held that:- The company has to be excluded as it owns IPRs and had branded products. Tata Elxis Ltd. – Held that:- The Tribunal directed the exclusion of this comparable for the reason that the software developed by this company were used as tools in development of new softwares – Decided partly in favour of assessee.
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