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2017 (9) TMI 1823 - AT - Income TaxTPA - comparable selection - functional similarity - HELD THAT:- TCS E-Serve Limited - As relying on ACTIS GLOBAL SERVICES PVT. LTD [2016 (8) TMI 1197 - DELHI HIGH COURT] deletion of this comparable from the final set of comparables on the ground that TCS was involved, both in transaction processing and technical services, and was, therefore, not a comparable company with respect to a company engaged only in BPO activities. Therefore, we deem it appropriate to exclude this company from the final set of comparables and direct the TPO/Assessing Officer accordingly. Eclerx Services Limited - this company is engaged in financial services, web content management and merchandising execution, web analytics, social media moderation and analytics, search engine analytics and support, CRM platform support, lead generation, customer data management, supply chain and channel analytics, price and catalogue competitive intelligence and broader data collection, cleansing, enriching and reporting whereas the assessee’s impugned segment is a back office segment which can only be characterised as a routine ITeS service provider. Therefore, it is evident that this company is functionally dissimilar to the assessee company. Infosys BPO Limited - Hon'ble Delhi High Court in Actis Global Services Pvt. Ltd. [2016 (8) TMI 1197 - DELHI HIGH COURT] rejected this comparable on the ground of high turnover wherein the comparable had a turnover of 66 times of the taxpayer. In the assessee’s case, it is seen that the assessee’s turnover from back office segment amounts to ₹ 4.35 crores whereas, as per the annual report of Infosys BPO, the turnover was ₹ 1129.11 crore which is approximately 260 times more than that of the assessee’s turnover. Therefore, we are inclined to agree with the contentions of the ld. AR and deem it fit to remit this comparable to the file of the Assessing Officer/TPO with the direction to delete this company from the final set of comparables after due verification of the figures of turnover of the assessee as well as of the comparable. Hence, this company stands excluded for statistical purposes. R Systems international Limited - The Hon'ble High Court has held in Mckinsey Knowledge Centre India Pvt. Ltd. [2015 (3) TMI 1226 - DELHI HIGH COURT] that if from the available data on record, the results for financial year can reasonably be extrapolated, then the comparable cannot be excluded solely on the ground that the comparables have different financial year endings. Therefore, we deem it appropriate to restore this comparable also to the file of the TPO/Assessing Officer for verifying the computation, as recast by the assessee, and include this comparable in the final set of comparables.
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