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2022 (2) TMI 1280 - AT - Income TaxTP Adjustment - comparable selection - application of turnover filter - HELD THAT:- The Tribunal in the case of Autodesk India Pvt.Ltd. [2018 (7) TMI 1862 - ITAT BANGALORE] took note of all the conflicting decision on the issue and rendered its decision and in paragraph 17.7. of the decision held as that high turnover is a ground for excluding companies as not comparable with a company that has low turnover. Thus we hold that companies listed in Sl.No.(a) to (g) of Grd.No.13 raised by the Assessee whose turnover in the current year is more than Rs.200 Crores should be excluded from the list of comparable companies. Exclusion of R.S.Software (India) Ltd. - turnover in the earlier two years being more than Rs.200 crores in the light of Rule 10CA - This Tribunal in the case of M/s. Barracuda Network (India) Pvt. Ltd. [2022 (5) TMI 322 - ITAT BANGALORE] for Assessment Year 2016-17 held that R. S. Software (India) Ltd., is to be regarded as a comparable company, but the margins for Assessment Year 2014-15 and 2015-16 of the company have to be ignored because in those years they are to be regarded as not comparable. We accordingly direct the TPO to take the margins of this company for Financial Year 2015-16 alone. Adjustment towards working capital - The issue with regard to the grant of working capital adjustment should be directed to be examined by the TPO/AO afresh in the light of the decision of the tribunal referred to above, after affording opportunity of being heard to the Assessee.
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