2018 (4) TMI 1840 - HC - Income Tax

TP Adjustment - exclusion of a comparable i.e. Wipro Technology Services Limited in the Arm s Length Price (ALP) determination - said entity reported abnormally high profits and had a large turnover and had the benefit of strong brand presence - also found that the entity (Wipro Technology) had undergone restructuring which had a significant impact upon its return and profitability - HELD THAT - This Court is of the opinion that the ITAT conclusions were reasonable and justified. A strong brand presence and unusual events such as amalgamation merger etc. which can have a miserable impact and are discerning from the record are reasonable grounds for excluding a particular comparable; which was a case of Wipro Technology. The Tribunal also noted that in such cases the issue of comparable has to been seen from the robust market practice as well.No question of law arises.

Summary

The Delhi High Court dismissed the appeal by the Revenue regarding the exclusion of Wipro Technology Services Limited as a comparable in the Arm's Length Price determination of the assessee. The Court found the ITAT conclusions reasonable, stating that factors like strong brand presence and restructuring justified the exclusion. The issue of comparability should be viewed in line with robust market practices. No question of law arose in this case.