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2019 (10) TMI 986 - AT - Income TaxTP Adjustment - Comparable selection - HELD THAT:- Infosys was engaged in diversified fields and it performed various functions as against the profile of the assessee wherein it was only providing Software Development Services to the group companies of Lucent Inc. Another aspect which needs to be kept in mind is the ownership of the branded / proprietary products by Infosys Technologies Limited, as against the facts that the assessee owns no intangible product company, even if it had meagre income cannot be compared with a non product company. Such is the proposition laid down in Rampgreen Solutions Pvt. Ltd. vs. Commissioner Of Income Tax, [2015 (8) TMI 931 - DELHI HIGH COURT] . Accordingly, we direct the AO to exclude the concern Infosys Technology Limited from the final list of the comparables. mPhasis BFL Limited - The business model of mPhasis was different wherein it was providing onsite services to its third parties, wherein out of Software charges of ₹ 161 Crores debited to cost of Revenue, sum of ₹ 157 Crores had been incurred in foreign currency. Such fact also makes the said concern as functionally not comparable to the assessee. Though segmental details are available but the segmental are at fault as large part of expenses have been booked as an unallocable expenditure. In such facts and circumstances, we are of the view that the concern mPhasis is not functionally comparable to the assessee, hence the same is not to be included in the final list of said comparables, while benchmarking the international transactions undertaken by the assessee. - Appeal of the assessee is allowed.
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