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2019 (6) TMI 1397 - ITAT BANGALORETP Adjustment - comparable selection - determination of Arms Length Price (ALP) in respect of international transaction u/s 92 - HELD THAT:- Infosys BPO Ltd - brand image of Infosys BPQ Ltd. in the market, the company incurs substantial selling and marketing expenditure whereas the assessee being a contract service provider does not incur such expenses to maintain its brand has not been controverted by them. Further, Infosys BPO Ltd. being a subsidiary of Infosys has an element of brand value associated with it. This can be further confirmed by the presence of brand related expenses incurred by Infosys BPO Ltd. Further, Infosys BPO Ltd. has acquired Australian based company M/s Portland Group Pty Ltd. during financial year 2011-12. They provide sourcing and category management services in Sydney, Australia. Therefore, this company also failed the TPO's own filter of rejecting companies with peculiar circumstances BNR Udyog Ltd. - this company was carrying out medical transcription, medical billing and coding whereas the Assessee was a captive service provider. The Tribunal followed its own ruling in the same Assessee’s case in AY 2011- 12 in BT e-Serve (India) Pvt.Ltd. Vs. ITO [2017 (11) TMI 64 - ITAT DELHI] giving identical reasons for excluding BNR Udyog Limited from the list of comparable companies in the field of companies rendering ITES such as the Assessee. Excel Info Ltd. - As decided in BT e-Serve (India) Ltd. [2018 (6) TMI 1639 - ITAT DELHI] there was abnormal volatility of revenue of this company from 2009-10 to 2014-15 and therefore this company should not be regarded as comparable company. Respectfully following the aforesaid decision, we direct exclusion of the aforesaid company from the list of comparable companies chosen by the TPO.
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