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2022 (10) TMI 1225 - AT - Income TaxTP Adjustment - comparable selection - Turnover filter should have an upper limit - HELD THAT:- Tribunal has excluded the comparable companies based on the upper turnover filter of Rs. 200 crores. In assessee's case from the table submitted, it is evident that the turnover all 10 comparable companies is more than Rs. 200 crores. Therefore respectfully following the M/S BORQS SOFTWARE SOLUTIONS PVT. LTD. case [2021 (10) TMI 1351 - ITAT BANGALORE] we hold that the companies having more than 200 crores turnover need to be excluded. We accordingly direct the TPO to exclude these companies while re-computing the ALP. Inclusion of Akshay Software on the ground that the company has incurred significant foreign branch expenditure - remit the issue of to the AO/TPO to consider the comparability of this company afresh while recomputing the ALP. Include I2T2 India Limited as a comparable while re-computing the ALP. TPO rejected the inclusion of Evoke Technologies Ltd. on the basis that the financials of the company has also included the financials of the financial branch which is un-audited and therefore the data is unreliable - e notice that the coordinate Bench in the case of Mindteck India Ltd [2022 (6) TMI 1334 - ITAT BANGALORE] has considered the issue of inclusion of Evoke Technologies P. Ltd wherein held comparability of this company was remanded to the TPO for fresh consideration. We are of the view that the comparability of this company has to be remanded to the TPO for fresh consideration in the light of the decision brought to our notice as above Addition made on account of receipt of fixed assets received free of cost/on loan basis - DRP has upheld the addition mainly on the ground that the assessee has not produced invoices and other relevant documents to substantiate that the assets have been received on loan basis/free of cost and also no evidence was produced that the assets have been returned to the lender - HELD THAT:- With regard to assets received from Quantum data International, the assessee had submitted before the DRP that the customs has wrongly recorded the assets received as replacement for defective assets imported earlier as assets received free of cost. This fact has not been considered or verified by the DRP - we remit the issue back to the AO to verify the invoices and other relevant documents that would substantiate the assessee's claim and decide the issue in accordance with law - This ground is allowed for statistical purposes.
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