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2017 (11) TMI 1756 - AT - Income TaxTPA - exclusion of the comparables WAPSCO and Mahindra Consulting Engineers Ltd. - Held that:- As set out by the Ld. AR and after going through the records, it’s clear that both these companies are functionally different. The Hon’ble Delhi High Court in case of Rampgreen [2015 (8) TMI 931 - DELHI HIGH COURT] has set out the ratio that functionally different comparables cannot be taken by the Revenue authorities or by the assessee for TP study. Therefore, these two comparables have to be excluded. Secondly about the inclusion of Kirloskar Consultants Limited, this company was earlier taken up as comparable in A.Y. 2010-11 which is immediately preceding year. The Revenue cannot take a different stand in one year and another in very next year without any proper reason assigned to the same. The RPT threshold of below 25% is applicable in the present comparable. Therefore, the TPO should have included this comparable. For working capital the order of the DRP is non speaking and the submissions of the Ld. AR are accepted. As relates to point (d) of the Hon’ble High Court directions, the same has to be taken into proportionate adjustment. Appeal of the assessee is allowed.
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