Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1920 - AT - Income TaxTP Adjustment - comparable selection - back office support services segment - HELD THAT:- Exclude Infosys BPO Ltd and TCS E-serve Ltd as comparable companies from the comparability analysis of back office support services segment. Include R System International Ltd as comparable company as the above company is found functionally comparable. Further, with respect to the mismatch of the FY the assessee is directed to provide audited, publicly available financial information with respect to quarterly results of the company to reconstruct the comparative financial year’s financial data to the ld Transfer Pricing Officer. CG Vak Software Ltd CG Vak Software Ltd company is included after detailed discussion holding that no functional dissimilarity is pointed out and further as the fact shows that assessee is not a persistent loss maker, we direct the ld AO/ TPO to include the above company. Advisory support segment - Inclusion of ICRA Management and Consulting Services Ltd as well as Cyber Media Research Ltd. - Noreason that this companies should not be included for the comparability analysis with respect to the advisory service segment of the assessee. Hence, we direct the ld TPO for their inclusion accordingly. Inclusion of Ladder Up Corporate Advisory Pvt. Ltd which has the PLI of 30.72% - It is admitted fact that the comparable selected by the ld Transfer Pricing Officer is engaged in twin activities Investment banking and merchant banking services along with investment advisory services. Further, no segmental information with respect to the advisory services is made available. Further, the ld TPO himself has excluded the investment banking activity from the comparability analysis we do not find any reason to keep this comparable incomparability analysis in absence of segmental information available. Hence, the TPO is directed to exclude this company Exclusion of Inmacs Management Services Ltd, a comparable selected by the ld Transfer Pricing Officer having 42.66% of the PLI - The comparable company undisputedly is providing advisory services coupled with investment banking services and dispute resolution services. The ld TPO has accepted that investment banking segment is not comparable with the advisory segment. Therefore, in absence of segmental information TPO is directed to exclude this comparable accordingly.
|