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2019 (11) TMI 1739 - AT - Income TaxTP Adjustment - determining the arm's length margin at 21.79% for provision of Information Technology enabled customer care back office support services to its Associated Enterprise ('AE') thereby making an addition - Comparable selection - HELD THAT:- Excel does not qualify the filters applied by the ld. TPO himself, it cannot be a suitable comparable vis-à-vis the taxpayer - In Baxter India Pvt. Ltd.[2017 (8) TMI 1557 - ITAT DELHI] coordinate Bench of the Tribunal excluded Excel as a comparable vis-à-vis ITES provider on ground of failing diminishing revenue filter adopted by the ld. TPO himself from FY 2009-10 to 2011-12. So, in view of the matter, we order to exclude Excel from the final set of comparables form benchmarking the international transactions qua ITES. TCS E-serve is not a suitable comparable vis-à-vis the taxpayer on the grounds inter alia that TCS E-serve is making payment of TATA brand equity; that it is functionally dissimilar and its segmental financials bifurcating revenue from ITES, IT and consultancy services is not available and that it is a risk bearing company whereas the taxpayer is low risk bearing captive service provider being remunerated on cost plus basis. Moreover, TCS E-serve has been excluded by the Revenue itself in taxpayer’s case for subsequent years as a comparable for benchmarking the international transactions. So, we order to exclude TCS E-serve as a suitable comparable vis-à-vis the taxpayer to benchmark the international transactions qua provision of ITES. Infosys BPO - Coordinate Bench of the Tribunal in the case of Societe Generale Global Solution Global Centre Pvt. Ltd. [2019 (2) TMI 1890 - ITAT BENGALURU] excluded Infosys BPO vis-à-vis routine ITES provider on ground of huge turnover, having huge brand value, having no brand intangibles and having incurred huge advertisement expenditure of Rs.5.54 crores and marketing expenses of Rs.1.54 crores - we are of the considered view that Infosys BPO is not a suitable comparable vis-à-vis the taxpayer to benchmark the international transactions qua provision of ITES services.
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