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2019 (8) TMI 1870 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- Deselction of companies as functionally not comparable with Low end BPO services as that of assessee. Deselection of company as into high-end KPO services and an assessee rendering low end BPO services cannot be compared with it. BNR Udyog Ltd. (segmental) - Assessee is challenging functional dissimilarity of this company with that of assessee as it is into medical transcription - As medical transcription services is basically back-office services provided by graduates who are trained for short period of 6 months to one year. These are short crash courses undertaken by graduates who are trained to understand and speak English. There is no value addition in the services rendered by people in medical transcription. To our understanding, basically these people who carry out medical transcription services are trained to understand language spoken by doctors, outside India to whom medical reports of patience are sent for expert opinion. Medical transcriptionist simply reproduces opinion expressed by Doctor, which is then communicated to the patients. It is observed from annual report placed that this company has segmental information of medical transcription and revenue earned under this segment is Rs.147.40 Lacs. It is also been observed that various other decisions by co-ordinate Benches of this tribunal has remanded this comparable back to Ld.TPO, for proper analysis and fresh consideration. Thus we set aside this comparable back to Ld.TPO for considering it afresh. Excel Infoways Ltd. (segmental) - As this company for year under consideration made a statement under 133 (6) regarding allocating entire employee cost to IT-BPO segment, with no allocation to other segment, which amounts to almost 49% of its total revenue during the year under consideration. At this stage, we clarify that, we are not inclined to express our opinion regarding functional similarities/dissimilarity of this company with that of present assessee before us and the same is kept open to be considered in an appropriate case. We therefore agree with contention raised by assessee regarding this comparable not satisfying employee cost filter. Informed Technologies India Ltd. - It is observed that this comparable has been not disputed for functional dissimilarity by DRP. However the observation that segmental informations are not available needs to be verified. We are therefore of considered opinion that, this comparable needs to be set-aside to Ld.TPO for verification afresh. Needless to say that assessee shall be granted proper opportunity as per law to represent its case.
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