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2019 (7) TMI 550 - HC - Income TaxTP Adjustment - Comparable selection - excluding Axis as a comparable - HELD THAT:- As pointed out by this Court in Rampgreen Solutions Pvt. Ltd. v. CIT [2015 (8) TMI 931 - DELHI HIGH COURT] “comparability analysis by the transactional net margin method may be less sensitive to certain dissimilarities between the tested party and the comparables. However, that cannot be the consideration for diluting the standards of selecting comparable transactions/ entities. A higher product and functional similarity would strengthen the efficacy of the method in ascertaining a reliable arm's length price. Therefore, as far as possible, the comparables must be selected keeping in view the comparability factors as specified. Wide deviations in profit level indicator must trigger further investigations/ analysis In the present case the reasons given by the ITAT for excluding Axis as a comparable appear to be plausible and based on a detailed analysis of the different profiles of the Assessee and Axis. Consequently, the Court is not persuaded that the ITAT has erred in excluding Axis as a comparable. No substantial question of law arises.
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