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2020 (9) TMI 286 - AT - Income TaxTP Adjustment - Comparable selection - HELD THAT:- Assessee provides Information Technology enabled Services (in short “ITeS”) and is mainly engaged in research support for a broad array of business challenges, including competitive intelligence, customer experience and branding customer analytics, investment and due diligence, market entry and product launch. Exclusion of TCS e-Serve Ltd. from the final list of comparables on the ground of the said concern having both brand value and high turnover - where TCS e-serve Ltd. has high brand value then it cannot be selected as comparable with a concern whose brand value is less. The Ld.DR for the Revenue stressed that the global entity of which the assessee is the subsidiary has high brand value. No merit in the stand of the Revenue in this regard. Even on the second issue of high turnover, the said concern i.e. TCS e-Serve Ltd. cannot be selected as comparable. The total turnover of the assessee during the year is ₹ 30.92 crores. On the other hand, the turnover of the TCS e-Serve Ltd. is ₹ 1578 crores. Accordingly we hold that the TCS e-Serve Ltd. is to be excluded from the final list of comparables. Infosys BPO Ltd. which has both brand value and high turnover of ₹ 1312 crores cannot be selected as a concern comparable to the assessee whose total turnover is only ₹ 31 crores (approx.). Accordingly, we hold so. - Decided in favour of assessee.
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