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2015 (11) TMI 64 - AT - Income TaxTransfer pricing adjustment - Computation of Arms Length Price - Held that:- E-Zest Solutions Ltd. to be excluded from the list of comparable companies chosen by the TPO as KPO services are not comparable to software development services and are therefore not comparable. Infosys Technologies Ltd., Tata Elxsi Ltd. and Wipro Ltd. held to be functionally not comparable with a software development service provider such as the Assessee in the case of 3DPLM Software Solutions Ltd.[2014 (12) TMI 612 - ITAT BANGALORE] and 24/7 Customer.Com Pvt. Ltd. [2013 (1) TMI 45 - ITAT BANGALORE] Celestial Biolabs Ltd. is not a comparable company with a software development service provider such as the Assessee Avani Cincom Technologies Ltd. and KALS Information Systems Ltd. be omitted from the list as is functionally dis-similar and different from the assessee and hence is not comparable. TPO/AO is directed to compute the arithmetic mean of the remaining comparable companies and allow adjustment of + / - 5% of the net margin as contemplated by the provisions of Sec.92C of the Act, if the Assessee is entitled to such adjustment as a result of exclusion of the comparable companies.
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