Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 43 - AT - Income TaxTransfer pricing adjustment - section of comparable - Held that:- As far as Accentia Technologies Ltd., is concerned, the DRP did not direct to exclude the comparable but directed the AO to verify whether there is any extraordinary event which had an effect on financials. Since it is AO who on verification excluded the comparable, we do not see any reason to interfere with the direction of the DRP. - Decided against revenue. As far as Eclerx Services Ltd., is concerned, DRP has given a clear finding that the said company was providing KPO services which are not comparable to assessee's BPO services. - Decided against revenue. Whether DRP is correct in excluding the Infosys BPO and TCS e-Serve Ltd.? - Held that:- As seen from the order of the panel about Infosys BPO and TCS e-Serve Ltd., they have considered twin conditions of advantageous brand value along with high turnover of ₹ 1,000 Crores and above. Assessee has objected on the same twin conditions as far as TCS e-Serve International Ltd., also. There is contradiction in the findings of the DRP in excluding two companies while rejecting assessee's objections in TCS e-Serve International Ltd. DRP also did not give any finding whether there is any influence on the margins of the comparables as there is no higher turnover filter adopted by the AO while selecting the comparables. As we see from the list of final comparables even a company with ₹ 1.74 Crores was selected as comparable company [Jeevan Softech Ltd., (Seg)]. Therefore, there seems to be some merit in Revenue's grounds. Since the DRP did not give any detailed reasoning and did not consider the TPO's order in its correct prospective, we are of the opinion that as far as exclusion of these two companies are concerned, DRP should have given a detailed order. For this purpose, we remit the matter to the DRP for limited purpose of giving detailed order on the contentions raised by Revenue in ground No. 2. - Decided in favour of revenue for statistical purposes. Excluding telecommunication charges from the total turnover while excluding the same from the export turnover - Held that:- With reference to ground of amount of communication charges excluded, AO considered an amount of ₹ 51,89,321/- i.e., total communication charges spent in India also whereas assessee objected before the DRP that the data link charges were only ₹ 39,22,626/-, which required to be reduced from both export turnover as well as from total turnover. The DRP, as can be seen from the direction in page 11 of the order has directed the AO / TPO to verify the correct amount of communication charges after giving due opportunity to assessee. Revenue should not have come in appeal on this direction of the DRP to verify the correct amount. Since verification is with the AO only, he should exclude only the communication charges as covered by the provisions of the I.T. Act. The ground is not maintainable. Accordingly, the same is rejected.- Decided against revenue.
|