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2018 (10) TMI 1677 - HC - Income TaxTP adjustment - Comparable selection - functional similarity between the Assessee and Li and Fung - HELD THAT:- The observations with respect to functional identity with Li and Fung India Pvt. Ltd. – is not appropriate because the assessee renders support services to its members whereas Li Fung is providing services on principal to principal basis to its AEs as well as third party. The second distinction is highlighted with respect to the revenue model – while in Li and Fung the cost plus was on a certain percentage mark up, the rule here is entirely different. There is no functional similarity and secondly the revenue model, though similar, is not identical. Needless to say, TPA analysis for all subsequent years would proceed on the facts presented.
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