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2018 (6) TMI 969 - HC - Income TaxTPA - Selection of comparables to determine the ALP - functional dissimilarity - Held that:- Assessee is engaged in providing Software Solutions and Back Office Operations thus companies dissimilar with that of assessee need to be deselected from final list of comparable - M/s. Kals Information System Ltd., is engaged in developing Software Products while assessee is engaged in the activities of providing software services. M/s. Compucom Software Ltd., was excluded from the list of comparable since it was was not only engaged in running of software development services but also sale of software products end to end mobile solutions as infrastructure services etc. and hence functionally dissimilar with that of assessee. Their is huge turnover difference between M/s. Infosys BPO Ltd. and the assessee, and hence being dissimilar cannot be treated as comparable. M/s. Cosmic Global Ltd. was also excluded from the list of comparable to determine the ALP since had a business model of subcontracting its work to others while providing services - while the business model of the Assessee was an inhouse business model - thus the appeal of revenue is dismissed.
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