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2018 (8) TMI 1852 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- As decided in M/S COMMSCOPE NETWORKS (INDIA) PRIVATE LTD. EARLIER KNOWN AS AIRVANA NETWORKS (INDIA) PRIVATE LTD., VERSUS THE ITO, WARD – 1 (1) (1) , BANGALORE [2017 (2) TMI 1383 - ITAT BANGALORE] one comparable ICRA Techno Analytics Ltd. is having RPT in excess of 15% and therefore, for this reason alone, this comparable has to be excluded although DRP has excluded it for a different reason that it is having various activities and segmental data are not available. We uphold its exclusion on account of RPT filter. Exclusion of Acropetal Technologies Ltd. (Seg) is covered in favour of the assessee by the same tribunal order rendered in the case of Applied materials India Pvt. Ltd. vs. ACIT [2016 (9) TMI 1458 - ITAT BANGALORE] . Respectfully following the same, we uphold its exclusion. Exclusion of 1) e – Zest Solutions Ltd., 2) Infosys Ltd., 3) Larsen & Toubro Infotech Ltd., 4) Persistent Systems & Solutions Ltd., 5) Persistent Systems Ltd., 6) Sasken Communication Technologies Ltd. and 7) Tata Elxsi Ltd. are also covered in favour of the assessee by the same tribunal order rendered in the case of Applied materials India Pvt. Ltd. vs. ACIT (Supra). Respectfully following the same, we uphold the exclusion of these Seven comparables also. Exclusion of E – Infochips Ltd. is covered in favour of the assessee by the tribunal order rendered in the case of Saxo India Pvt. Ltd. vs. ACIT [2016 (2) TMI 604 - ITAT DELHI] . Respectfully following the same, we uphold its exclusion. Respectfully following this tribunal order, we exclude these 10 comparables i.e. 1) Accropetal Technologies Ltd. (Seg.), 2) E – Zest Solutions Ltd., 3) E – Infochips Ltd., 4) ICRA Techno Analytics Ltd., 5) Infosys Ltd., 6) Larsen & Toubro Infotech Ltd., 7) Persistent System & Solutions Ltd., 8) Persistent Systems Ltd., 9) Sasken Communication Technologies Ltd. and 10) Tata Elxsi Ltd. Regarding MYM Technologies Ltd., we find that this comparable was excluded on this basis that data for current financial year are not available. Before us, it was submitted that page 2244 of (ARC) is relevant. We find that on this page, Directors Report is available containing brief Financial result for 12 months ending on 30.06.2010 and 9 months ending on 31.03.2011 but in this ARC, the corresponding audited Balance Sheet and P & L Account are not available. Hence, we find no merit in the assessee’s request for inclusion of this comparable. Regarding FCS Software Solutions Ltd., it is seen that it is noted by DRP that revenue of ₹ 115.99 Crores has been shown from Software Development and other services and there is no segmental information available in respect of Software Development. It is also noted by DRP that it is not possible to ascertain as to whether this company passes employees cost filter or not. It is also noted that this company is predominantly engaged in onsite development of software. In the present case, TPO and DRP’s objections include these aspects also in addition to high working capital adjustment. On these other aspects, this tribunal order does not render any help to the assessee. There is no other argument raised in respect of these other aspects. Hence, we decline to interfere in the direction of DRP in respect of this comparable. The request of the assessee for inclusion of all three comparables is rejected. Deduction u/s 10A - Reduction of some expenses from total turnover also while computing deduction u/s 10A by following the judgment of Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT] . This judgment is now approved by Hon’ble apex court also. Hence, we find no infirmity in the directions of DRP on this issue.
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