Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (11) TMI 1093 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- Accentia technologies Ltd - We find that the revenue shown by this comparable company is only medical transcription, billing and collection and income from coding. We do not find any product sale by this comparable company, therefore, the reason given by the learned Dispute Resolution Panel for exclusion of this comparable company is devoid of any merit. Therefore, we reverse the finding of the learned Dispute Resolution Panel and direct the learned Transfer Pricing Officer to include the above comparable company for the comparability analysis. Therefore, the ground of the learned assessing officer with respect to this comparable company for its inclusion is upheld. ACROPETAL TECHNOLOGIES LTD - In schedule 9 the comparable company is also debited software development expenses. The learned departmental representative on this aspect could not show us that whether the company is not engaged in development of software or not. This comparable has been selected by the learned Transfer Pricing Officer and therefore he should have brought on record necessary details to show that this company is not engaged in development of the software but in the similar kind of functions as performed by the assessee. For this reason , we do not find any infirmity in the order of the learned Dispute Resolution Panel in directing the learned TPO to exclude this comparable company. Thus, direction of the learned Dispute Resolution Panel with respect to exclusion of this comparable is upheld. E Clrex Services Limited - This company is in the business of providing Knowledge Process Outsourcing services which is not the function of the assessee. Therefore, we do not find any infirmity in the direction of the learned dispute resolution panel in directing the learned transfer pricing officer to exclude this comparable company. Thus, direction of the learned dispute resolution panel with respect to this comparable is upheld. Infosys BPO Ltd and TCS E serve Ltd - No infirmity in the direction of the learned dispute resolution panel to exclude both these comparable from the comparability analysis on the basis of their turnover being multiple times then the turnover of the assessee. Working capital adjustment granted by the learned dispute resolution panel despite the assessee does not bear any working capital risk - Substantial revenue of the assessee is locked into the sundry debtors. Therefore we do not find any infirmity in the order of the learned dispute resolution panel in upholding the working capital adjustment granted by the learned transfer pricing officer. Accordingly the cross objection filed by the assessee with respect to ground is dismissed.
|