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2019 (6) TMI 1634 - AT - Income TaxTP Adjustment - comparable selection - application of turnover filter - HELD THAT:- As in this case, the Tribunal has approved the applicability of turnover filter of 1/10th or 10 times of the turnover of the tested party. In holding so, the Tribunal has followed the binding judgment of Hon'ble Karnataka High Court rendered in the case of Acusis Software India P. Ltd. [2018 (8) TMI 1885 - KARNATAKA HIGH COURT- thus we hold that the two comparables CG-VAK Software Exports Limited and Larsen & Toubro Infotech Limited should be excluded by applying the turnover filter because the turnover of CG-VAK Software Exports Limited is less than 1/10th of the assessee company’s turnover and the turnover of Larsen & Toubro Infotech Limited is more than 10 times of assessee company’s turnover. The turnover of Larsen & Toubro Infotech Limited is said to be ₹ 3,609.32 Crores and hence, it is more than 10 times of the turnover of assessee company of ₹ 234.38 Crores. By applying the turnover filter, we direct the TPO/AO to exclude these two comparables from the final list. In view of this, we feel that other arguments in respect of exclusion of these two comparables are not required to be discussed and decided. As assessee is engaged in the provision of software development services to its AEs, thus companies functinally disimilar with that of assessee need to deselected from final list.
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