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2021 (12) TMI 1474 - AT - Income TaxTP Adjustment - DRP directed TPO /A.O. to exclude eight out of thirteen comparable entities whereby reducing arm’s length price (ALP) adjustment - HELD THAT:- We note at the outset that this tribunal’s co-ordinate bench order in Assessment Year 2009-10 in assessee's case [2014 (11) TMI 129 - ITAT HYDERABAD] itself has already excluded M/s. Eclerx Services Ltd., M/s. Cosmic Global Limited and Infosys BPO on the ground that they provide KPO services, have different business model(s) since having huge sub-contracting company brand value, diversified activity and other functional dissimilarities; respectively. Revenue has admittedly not indicated any distinction for the relevant facts in these twin assessment years. The outcome is not different qua the remaining comparables as well wherein we find that M/s.Informed Technologies Ltd. fails revenue filter of 75% applied by the TPO himself. M/s. Jeevan Scientific Technologies Ltd. has also been rejected on the very turnover filter as well as in light of huge fluctuating margin pinpointing abnormal trend. Same factual position prevails regarding M/s. Mastiff Tech P. Ltd. having bad debts influencing its profit margin thereby reducing them from 21.78% to 2.28% only. We lastly note that M/s. TCS E-Serve Ltd. fails to satisfy the turnover filter which is also found to be catering mainly to M/s. Citi Group having diversified portfolio than assessee's IT Enabled Services segment. Suffice to say, the learned panel has taken due note of all applicable judicial precedents as well. We thus decline the Revenue’s instant sole substantive grievance as well as the main appeal.
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