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2017 (7) TMI 1314 - ITAT PUNETPA - comparable selection - exclusion of concern FCS Software Ltd. from the list of comparable companies - HELD THAT:- Segmental accounts were not available. Secondly, the said concern cannot be selected as comparable because of the filters applied by the TPO himself in selecting the concerns; one of the filters was companies with income from IT services more than 50% of the operating revenue or segmental revenue were to be selected. However, the said company had earned 42% of its total revenue from providing software services and applying the filter selected by the TPO, the said concern is to be excluded from the final list of comparables. Accordingly, we uphold the order of CIT(A) and dismiss the ground of appeal No.1 raised by the Revenue. Exclusion of Infosys Technologies Ltd. and L&T Infotech being not comparable for not fulfilling the filter of turnover and also the brand - As relying on TIBCO SOFTWARE INDIA PVT. LTD. VERSUS THE DY. COMMISSIONER OF INCOME TAX, CIRCLE – 7, PUNE AND VICE-VERSA [2017 (1) TMI 1574 - ITAT PUNE] we uphold the order of CIT(A) in excluding Infosys Technologies Ltd. and L&T Infotech Ltd. from the final list of comparables, wherein the said concerns were product companies and functionally not comparable. Further, the said concerns are not comparable because of high turnover, as against the assessee having very low turnover in the field of provision of software services. Accordingly, the ground of appeal No.2 raised by the Revenue is dismissed.
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