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2019 (5) TMI 1973 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- Cybermate Infotek Ltd. being engaged in both sale of software products and also providing software development services and in the absence of any segmental details of two divisions being available, the margins of said concern cannot be applied in order to benchmark arm's length price of international transactions undertaken by the assessee, which was solely engaged in providing software development services. Cybercom Datamatics Information Solutions Ltd.a product company and was also providing software development services to its associated enterprises, cannot be included in final list of comparables while benchmarking international transactions of assessee of providing software development services to its associated enterprises. Infobeans Systems Pvt. Ltd. as earning foreign exchange from export of goods on FOB basis is also not to be included in the final list of comparables. Thirdware Solutions Ltd. was deriving revenue from sale of license and software services export from SEZ units and also revenue from subscriptions, etc. The said concern had imported raw materials and was also owning intangibles and in the absence of any segmental details, was held to be not functionally comparable.Thirdware Solutions Ltd. is to be excluded from final list of comparables. Decided in favour of assessee.
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