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2018 (3) TMI 1962 - AT - Income TaxTP Adjustment - Comparable selection - adopting M/s. Infosys BPO as comparable while arriving at the NCP margin in the case of the assessee - HELD THAT:- M/s. Infosys BPO Ltd., cannot be treated as a comparable company while arriving at the average NCP margins in the case of the assessee. We also draw strength from the decisions pointed out before us by the Ld.AR in the case H & S Software Development and Knowledge Management Centre Pvt Ltd. [2018 (1) TMI 1548 - DELHI HIGH COURT] wherein it was held that M/s. Infosys BPO has a significant brand presence and cannot be compared to the assessee’s transactions whose turnover is comparatively minimal. The Bangalore bench of the Tribunal in the case M/s. Flextronics Technologies India Pvt. Ltd. [2015 (10) TMI 2653 - ITAT BANGALORE] has also held that M/s. Infosys BPO cannot be treated as the comparable company because it enjoys substantial brand value and market leadership. Similar view was taken in the case Maersk Global Service Centers (India) P Limited [2016 (7) TMI 1437 - ITAT MUMBAI] Therefore following the above ratios laid down by the Tribunal and Hon’ble Delhi High Court referred by the Ld.AR, we hereby direct the Ld.AO to exclude M/s. Infosys BPO as comparable company while arriving at the NCP margin in the case of the assessee - Appeal of the assessee is allowed.
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