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2021 (6) TMI 1129 - AT - Income TaxRecruitment and training expenditure and retention bonus expenditure - Allowable revenue expenditure - staff recruitment expenses have been incurred mainly for payment to third party recruitment agency and access to various job sites like Naukri.com and the referral books - HELD THAT:- As respectfully following decision of coordinate bench in assessee's own case [2018 (4) TMI 638 - ITAT DELHI] we allow grounds of appealand direct ld AO to treat Training, staff Recruitment and retention bonus as revenue expenditure. TP Adjustment - comparable selection - Thirdware solutions Pvt Ltd - HELD THAT:- This comparable has been considered in the case of assessee by Coordinate bench in WIPRO LIMITED C/O WIPRO ENERGY IT SERVICES INDIA PRIVATE LIMITED (FORMERLY KNOWN AS, SAIC INDIA PRIVATE LIMITED) [2018 (4) TMI 638 - ITAT DELHI] and has excluded the same. There is no change in facts and FAR of assessee or comparable shown to us. Exclusion is Wipro technology services Ltd. - DRP though held that Wipro technology services Ltd is functionally comparable however not dealt with the argument of the assessee with respect to its transactions with Citigroup. In view of this, we find that there is controlled transaction in this company and therefore it cannot be included. We direct the learned AO/TPO to exclude the same. E Info chips Bangalore Ltd - AO tried to draw the support for deriving the conclusion that this company passes the employee cost filter by showing the profit and loss of financial year 2010 – 11 however, the learned assessing officer has not given the profit and loss account schedules for the year ended on 31st of March 2010 of this comparable. The learned departmental representative could not show us any reason that why this schedules of the profit and loss account are not provided to the assessee. Even the learned DRP as we have already held is silent on this aspect. When the complete information about the comparable is not available in a reasonable manner, it cannot be considered for the comparability analysis of an international transaction of the assessee by including it. For this reason only, we direct the learned transfer-pricing officer to exclude this comparable. Accordingly all the above three comparables i.e. Third ware Techonlogies Solutions Limited, Wipro technologies Ltd and E Infochips Banglore Limited are directed to be excluded from the comparability analysis. To this extent, the transfer pricing grounds of the appeal of the assessee are allowed.
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