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2015 (7) TMI 566 - AT - Income TaxTransfer pricing adjustment - selection of comparable - Held that:- We direct the AO/TPO to exclude these companies [Flextronics Software Systems Ltd., iGate Global Solutions Ltd.,Mindtree Ltd.,Persistent Systems Ltd., Sasken Communication Technologies Ltd.,Tata Elxsi Ltd.,Wipro Ltd. and Infosys Technologies Ltd. from the list of comparables. It is submitted by the learned counsel for the assessee that if all the above companies are excluded from the list of comparables as not comparable with a software development service provider such as the Assessee, then the operating margin of the assessee would fall within the + or -5% of the operating margin of the comparable companies. AO is therefore directed to verify the said contention and compute the ALP accordingly. Further, as the ALP needs no further adjustment as a result of exclusion of all the above companies, we are not inclined to admit the additional ground of appeal seeking inclusion of the companies raised in the additional ground of appeal as comparable companies for the purpose of determination of the ALP of the international transaction, as it would only result in academic exercise. In view of the same, the additional grounds of appeal are not admitted. - Decided partly in favour of assessee.
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