Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 897 - AT - Income TaxTransfer pricing adjustment - selection of comparable - Held that:- For M/s Accentia Technologies Ltd. has not been found to be comparable to a concern rendering IT enabled services. The arguments putforth by the TPO, which has been reiterated before us, do not justifiably meet with the assessee’s plea for exclusion of M/s Accentia Technologies Ltd. from the final set of comparables. The plea of the assessee is quite potent and is in-fact based on the discussion available in public domain in the form of Annual financial statement of the said concern. Moreover, in the light of the decision of the Pune Bench of the Tribunal in the case of PTC Software (India) Private Limited (2015 (1) TMI 466 - ITAT PUNE), we find no reason to negate the plea raised by the assessee for exclusion of Accentia Technologies Ltd. from the final set of comparables. For Crossdomain Solutions Ltd it is indulged in high skill IT services which are not comparable to the routine I.T. Enabled services. Further, the company is engaged in providing Niche services as well as developed its own brand ‘Exdion’ to target the insurance industry in US. Thus we uphold assessee’s plea for exclusion of Crossdomain Solutions Ltd. from the final set of comparables. For M/s Cosmic Global Ltd.in relation to the financial year under consideration, the business model in which M/s Cosmic Global Ltd. has functioned is quite dissimilar to the business model of the assessee while carrying out the activity of an ITES provider. Moreover, none of the objections raised by the assessee have been met by the TPO on the basis of any cogent reasoning. On that count also, we find that the plea of the assessee to exclude M/s Cosmic Global Ltd. from the final set of comparables is justified. The objection of the TPO that the said concern was found comparable by the assessee in earlier year cannot be the sole basis to include the said concern in the list of comparables. For Eclerx Services Ltd. the plea of the assessee that the said concern is functionally dissimilarly to the assessee, has been wrongly rejected by the TPO. Even before us, there is no cogent reasoning brought out by the Revenue to assail assessee’s plea for exclusion of M/s Eclerx Services Ltd. from the final set of comparables. We direct accordingly. For Coral Hubs Ltd. (Formerly known as Vishal Informational Technologies Ltd.) the Tribunal in the assessee’s own case had held that the said concern was found to be operating in different functional environment and the same was excluded for the purpose of comparability analysis, thus we uphold the plea of the assessee in excluding the margins of the said concern M/s. Vishal Technologies Ltd. Since we have upheld the plea of the assessee for exclusion of (i) Accentia Technologies Limited; (ii) Crossdomain Solutions Limited.; (iii) Cosmic Global Limited; (iv) Eclerx Services Limited; and, (v) Coral Hubs Limited from the final set of comparables, the other Grounds of Appeal raised by the assessee in order to assail the addition of ₹ 9,56,21,498/- on account of transfer pricing adjustment are rendered academic and are not being adjudicated for the present. - Decided in favour of assessee.
|