Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1868 - AT - Income TaxTP Adjustment - Comparable selection - HELD THAT:- Exclusion of Thirdware Solution Ltd. as decided in own case [2018 (5) TMI 2146 - ITAT MUMBAI] we direct that Thirdware Solutions Ltd. should not be considered as comparable. Aspire Systems India Pvt. Ltd. - This company is liable to be excluded from the list of comparable in as much as its related party transaction to sale is above 25% of filter applied by the TPO himself. As claimed that this aspect is arising out of financials of the company itself. On the facts and circumstances of this case, we deem it appropriate to remit this issue to the file of the TPO. TPO shall examine the working as given by learned counsel as above. If RPT exceeds 25%, this shall cease to be a good comparable and be liable to be excluded. As regards the claim that this company has extraordinary event affecting the income, the said plea has been rejected by DRP on the ground that it is not borne out of records. Now learned counsel is referring to notes of account of the said company to canvas his proposition.We deem it appropriate to remit this aspect also to the TPO for factual verification and order accordingly. Cigniti Technologies Ltd. is engaged in software testing services and the same has been found to be functionally different from software development services in the aforesaid case law. Following the precedents as above, we direct that the above comparable should be excluded.
|