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2020 (7) TMI 816 - AT - Income TaxTP Adjustment - comparable selection - TPO characterising the assessee as KPO - HELD THAT:- As assessee despite bringing the fact on record that Excel Infoways was excluded by DRP itself in AY 2012-13, the DRP upheld the order of TPO, without bringing material difference for the year under consideration to justify its inclusion. We have further noted that the TPO himself identify this company as back office services to its AE‟s. More over unusual business year is also not disputed by the TPO. Even otherwise this comparable was included by TPO by treating the assessee as KPO. The assessee has placed on record the annual report of this company. We have carefully perused the annual report of this comparable company. Perusal of annual report of this comparable company shows that this company is engaged in providing business support service; IT enabled services and development of infrastructure facilities. Considering the segmental reporting of the comparable company, in our view this is not a valid comparable with the assessee which is engaged in providing non-binding investment advisory services. Therefore, we direct the TPO to exclude this comparable from the final set of comparable. Considering the decision of Tribunal in assessee‟s own case for earlier year wherein three comparable namely Almond, Crisil and ICRA was considered as valid comparable. We have directed to exclude Excel Infoways Ltd on the basis of order of DRP for AY 2012-13 and our discussion therefore, we find that both the substantial ground of appeal are covered in favour of assessee. Considering the facts that we have allowed both the substantial ground of appeal in favour of assessee therefore, adjudication on the issue related with economic analysis has become academic.
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