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 980 - AT - Income TaxTransfer pricing adjustment - selection on comparable - Held that:- Respectfully following the decision of Trilogy E-Business Software India P. Ltd. (2013 (1) TMI 672 - ITAT BANGALORE), we hold that the following companies should be excluded from the list of comparable companies, i.e. Flextronics Software Systems Ltd.,iGate Global Solutions Ltd., Mindtree Ltd., Persistent Systems Ltd., Sasken Communication Technologies Ltd. (Seg.), Infosys Technologies Ltd., Tata Elxsi Ltd., KALS Information Systems Ltd.. M/s. Lucid Software Ltd., M/s. Celestial Biolabs Ltd. E-Zest Solution Ltd., Thirdware Solutions Ltd.,M/s. Softsol India Ltd. and M/s. Avani Cincom Technologies Ltd. - This Tribunal in the case of 3DPLM Software Solutions Ltd. v. Deputy CIT [2014 (12) TMI 612 - ITAT BANGALORE] held that this company is not functionally comparable with a software development service provider. Also see E-Gain Communications P. Ltd. case [2008 (6) TMI 299 - ITAT PUNE-A ] Method of computation of deduction under section 10A - Held that:- Taking into consideration the decision rendered by the hon'ble High Court of Karnataka in the case of CIT v. Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT] we are of the view that it would be just and appropriate to direct the Assessing Officer to exclude telecommunication charges and travelling expenses incurred in foreign currency both from export turnover and total turnover, as has been prayed for in the alternative by the assessee. - Decided in favour of assessee. Non deduction of TDS - According to the assessee the payment in question was reimbursement of expenses incurred by the non-resident on behalf of the assessee and therefore there was no obligation to deduct tax at source as the payment does not constitute income of the non-resident - assessee did not raise any objection on the proposed addition in the draft assessment order before the Dispute Resolution Panel - Held that:- A perusal of the above provisions of section 144C of the Act makes it clear that the draft assessment order of the Assessing Officer will attain finality to the extent that the assessee does not object to the proposals in the draft assessment order. The Dispute Resolution Panel is at liberty to consider any issue after due opportunity to the Assessing Officer and the assessee. The directions issued by the Dispute Resolution Panel are binding on the Assessing Officer.We are of the view that in the light of the above statutory provisions, the assessee cannot seek to raise an issue before the Tribunal in respect of which he has not filed any objection before the Dispute Resolution Panel nor has the Dispute Resolution Panel considered the issue in exercise of their powers under section 144C(8) of the Act. - Decided against assessee.
|