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2015 (1) TMI 1155 - AT - Income TaxUpward adjustment to the prices charged - international transactions namely rendering of IT enabled design engineering services to its associated enterprises - Held that:- the assessee has placed reliance on the decision of ITAT, Pune in the case of Amdocs Business Services Private Limited [2012 (12) TMI 482 - ITAT PUNE ] wherein identical issue raised by the learned TPO that margins of comparable parties are to be adjusted and not of the tested party. The Tribunal in such a situation has upheld the validity of such an adjustment to the profits of the assessee. It was also claimed that the DRP has not adjudicated this issue. Nothing contrary has been brought to our knowledge on behalf of the Revenue. So, in the interest of justice, we restore this issue to the DRP with a direction to decide the same as per fact and law after providing an opportunity of being heard to the assessee. Selection of comparable - Held that:- AO/TPO is directed to omit these three companies chosen, i.e. Rolta India, KLG and Powersoft by the TPO from the set of comparables for the year under consideration as Rolta India Ltd has huge turnover difference, Powersoft Global Solutions Ltd has financial year of the company differs by six months and KLG Systel Ltd is functionally not comparable, thus the matter is restored back to the TPO/AO who shall carry the search of comparables afresh in terms of criteria laid down in Rule 10B(2) of Income Tax Rules 1962 after giving an opportunity of being heard to the assessee. One of the comparables Caliber Point Business Solutions has related party transactions of 30% of Revenue and going by the threshold filter of 25% of the related party transactions the said comparable cannot be said to be uncontrolled comparable and ought to be excluded from the list of comparables. We direct the TPO/AO to exclude the said comparable from the list of comparables taken for the purpose of benchmarking for the said A.Y. 2008-09. - Decided in favor of assessee.
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