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2019 (1) TMI 1795 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- Accentia Technologies Ltd. is engaged in the business of developing software products and it does have any segmental information for its services segment and software products segment. Though the Ld D.R sought time to find out availability of segmental details, yet no such information was provided before us. Accordingly, the absence of segmental information would make this company incomparable. Accordingly, we direct the Assessing Officer to exclude this company. E-clerx Services Ltd. cannot be compared with assessee being a KPO company. M/s. Mold-Tech Technologies Limited is a KPO company providing structural engineering services. Further during the year under consideration, extra ordinary events like amalgamation and demerger have taken place. Hence, there is merit in the contentions of the assessee that this company cannot be taken as a comparable. M/s. Acropetal Technologies Limited comparable has two segments namely engineering design service segment and Information technology service segment.TPO has considered engineering design service segment and compared the same with the assessee company. As noticed earlier the assessee company is providing routine ITE services to its AEs as a captive service provider. Identical scenario was considered in the case of Symphony Marketing Solution India P. Ltd. [2014 (2) TMI 83 - ITAT BANGALORE] and this comparable has been excluded. Since all the above said four companies have been directed to be excluded, arithmetic mean margin of comparable requires to be redetermined and it also requires to be seen as to whether any addition, if any, is called for or not. Accordingly, we restore the issue of determining mean margin of comparables to the file of the Assessing Officer for examining it afresh by excluding four comparable companies. Disallowance u/s 14A - A.R submitted that the disallowances made while computing the profits and gains of business shall also be eligible for deduction u/s 10A - prayed that the AO may be directed to allow deduction u/s 10A of the Act in respect of disallowance made u/s 14A - HELD THAT:- This claim of the assessee requires examination in terms of the circular issued by CBDT. Accordingly, we restore this issue to the file of AO for examining the same. Claim for credit of TDS amount - HELD THAT:- We restore this issue also to the file of the AO, as it requires examination of relevant TDS certificates and income declared by the assessee.
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