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2019 (10) TMI 1552 - AT - Income TaxTP Adjustment - marketing and sales support services provided by the assessee to its AE - comparables finally selected to benchmark the international transaction of the assessee - assessee is against the selection of Apar Chematek Lubricants Ltd., on the ground that it fails the related party transaction filter. HELD THAT:- TPO himself at page 14 had applied the RPT filter with 25% threshold, we find no merit in the order of the authorities below in including sale Apar Chematek Lubricants Ltd as functionally comparable to the assessee. The earnings of the said concerns were 100% of the Revenue earned from its holding company. Since the concern fails to fulfill the RPT filter, the same is directed to be excluded from the final list of the comparables. Accordingly, we hold so. Info Edge (India) Ltd. - Where the assessee was provided marketing and sales support services to its AE then a concern which is engaged in providing Internet based services through web portal for different services i.e. recruitment / matrimony related services, estate services, education related services, then such a concern is not functionally comparable to the assessee. The said concern cannot be included in the final set of comparables. Accordingly, we hold so. MM TV Limited - The source of Revenue in the case of MM TV Limited is from advertising income and it also owned intangibles; as against the assessee which was providing support services and did not own any intangibles. Accordingly, we hold that such a concern cannot be held to be functionally comparable to the assessee and has to be excluded from the list of the comparables. Accordingly, we hold so. Media Research Users Council registered as not-for-profit body of members representing advertisers, advertising agencies, publishers, and broadcast/other media -We find merit in this plea of the assessee on the ground that the said concern was registered as not-for-profit body of members representing advertisers, advertising agencies, publishers, and broadcast/other media. It undertook research work for the benefits of its own members only and the revenue earned was from the membership fee charged to the members. On the other hand, the assessee was providing marketing and sale support services to its AE. Accordingly, we direct its exclusion from the final set of comparables. Assessee appeal allowed.
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