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2019 (5) TMI 1849 - AT - Income TaxTP Adjustment - Comparability of Accentia Technologies Ltd. (‘Accentia’) - HELD THAT:- As per the ‘Management Discussion Analysis’ of the annual report, the company is engaged in software development as it has SaaS model. Further, the company has also developed software solutions such as ‘Instakare’ and ‘Insta PMS’ which helps healthcare providers with a holistic and comprehensive solutions that fulfils all the medical and administrative support needs. In the absence of segmental financial information for software development product sales (which would form part of income earned from medical transcription) the company cannot be considered as a comparable. Thus direct the TPO/AO to delete Accentia Technologies Ltd. from the final list of comparables. Acropetal Technologies Ltd. (Seg) - Acropetal operates various services such as architectural, structural, electrical engineering etc. which are functionally different from the ITeS rendered by the appellant. We find that the Safe Harbour Rules issued by CBDT clearly demarcates between BPO and KPO services and has also provided separate Safe Harbour Margin for these type of services. We follow the above order of the Tribunal in assessee’s own case for the immediate preceding assessment year and direct the TPO/AO to delete Acropetal Technologies Ltd.(Seg) from the list of final comparables. ICRA Online Ltd. (Seg) - Following the decision of Tesco Hindustan Service Centre Pvt. Ltd. [2017 (1) TMI 1673 - ITAT BANGALORE] and the observations in the Tribunal decision in appellant’s own case for AY 2010-11, we reject ICRA Online as a comparable.
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