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2015 (4) TMI 134 - AT - Income TaxTransfer pricing adjustment - selection of comparable - Infosys Technologies Limited - Held that:- The assessee is claiming to be operating at minimal risk as 100% of its services are provided to AEs. The assessee is claiming to be engaged into software development services and administrative support services as against the diversified services rendered by Infosys Technologies Limited. The assessee is claiming not to have its own proprietary products like Finacle owned by Infosys Technologies Limited. The assessee is claiming to have spent only nominal amount of expenditure at ₹ 2.7 lakhs on advertisement/sales promotion & brand building as against ₹ 499 crores incurred by Infosys Technologies Limited. The assessee claims not to have incurred any expenditure on research and development as against Infosys Technologies Limited spending a sum of ₹ 102 crores on it. The above facts clearly indicate that prima facie the case of Infosys Technologies Limited does not appear to be comparable with that of the assessee. The contention of the learned DR that the difference in the revenues earned by the assessee vis-a-vis Infosys Technologies Limited was not of such a magnitude as was in the case of Agnity India Technologies (P.) Ltd. (2013 (7) TMI 696 - DELHI HIGH COURT), does not advance the case of the Revenue. Mphasis BFL Limited learned AR submitted that it is engaged in diversified IT services segment offering business process operations, application development and maintenance etc. as against the assessee being a contract software development services. Certain other points were also highlighted to justify the exclusion of this case. On a pointed query from the Bench, the learned AR agreed that such points of difference have not been considered by the authorities below. Remit the matter to the file of the TPO for computing the ALP of the international transactions afresh in the light of our above discussion - Appeal decided in favour of assessee for statistical purposes.
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