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2019 (10) TMI 1310 - AT - Income TaxTP Adjustment - comparable selection - Functional dissimilarity - HELD THAT:- Assessee is providing Information Technology Enabled Services (ITES) to its AEs, selected itself as the tested party and applied Transactional Net Margin Method (TNMM) as the Most Appropriate Method (MAM) with OP/OC as Profit Level Indicator (PLI). Acropetal being engaged in development of products and intellectual property, having no segmental profitability available and has undergone business restructuring, extra-ordinary circumstances, cannot be a suitable comparable to benchmark the international transactions qua business support services vis-à-vis the taxpayer, hence ordered to be excluded. TCS E-Serve cannot be a valid comparable vis-à-vis taxpayer on ground of its large volume of operations having huge brand value, lack of segmental and functional dissimilarity, hence ordered to be deleted.
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