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2021 (9) TMI 1418 - AT - Income TaxTP Adjustment - Comparable selection - turnover limits - HELD THAT:- Persistent Systems Ltd., Larsen and Toubro Infotech Ltd., Infosys Ltd., Thirdware Solutions Ltd. - There is nothing on record brought by the Ld. CIT. DR in order to establish that these are comparable with assessee that is a captive service provider which functions at the strict supervision and instructions by the AE's - we note that turnover criteria has to be applied with an upper limit which is not been considered by the Ld. TPO. The TPO has applied less than 1 crore turnover limit to eliminate the comparables however it failed to apply upper limit considering the functions performed assets owned and risk assumed by assessee under this segment for the year under consideration. Respectfully following the view taken by coordinate benches in respect of the turnover limits that needs to be applied, we direct Ld. AO/TPO to reject the comparable accordingly from the finalist. Insofar as Aspire systems (India) Ltd., Nihileant Technologies Ltd. And Cybage Software Pvt. Ltd. is concerned, it is also been submitted by Ld. AR that direction may be given to the Ld. AO to consider correct margins of the comparables that is finally retained in the final list. Accordingly we direct the Ld. AO/TPO to adopt correct margins of the comparables in accordance with law.
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