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2015 (5) TMI 354 - AT - Income TaxTransfer pricing adjustment - selection of comparable - Held that:- Eclerx Services Ltd. engaged in providing data analytics services with expertise in financial service and retail and manufacturing as thus be excluded from the list of comparables for the reason that it is providing high end services involving specialised knowledge and domain expertise and same cannot be compared with companies which are mainly engaged in providing low end services to group companies as of assessee. See Maersk Global Centre (India) Private Ltd. vs. ACIT [2014 (3) TMI 891 - ITAT MUMBAI] Vishal Information Technology Ltd. be excluded from the comparable list as it is functionally different from assessee also having low employee cost of 3%. Vishal is very high profit making company and operates on outsourcing model and hence, has different business model to that of assessee. Maple E Solutions Ltd. and Triton Corporation Ltd. be excluded from the comparable list as The promoters of the company were involved in the fraud for earlier years, hence the financial results of these companies are distorted and accordingly cannot be relied upon. Mold-tek Technologies Limited is engaged in providing engineering consulting services as part of its IT operations. The Company has specifically categorized its IT operations as KPO in its annual report. The Company has also accepted in its reply u/s 133(6) that the company provides engineering design drawing and detailed structural engineering using 3D and 2D software’s. The Engineering design services provided by the company are high end in nature involving special knowledge and domain expertise and therefore, not functionally comparable with the assessee company which is engaged in providing low end ITES enabled call centre services. Therefore, we hold CIT (A) is justified in excluding this company from the final list of comparable.
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