2020 (11) TMI 869 - ITAT DELHI - Income Tax

Head Note / Extract:
TP Adjustment - comparable selection - software development services segment of assessee - HELD THAT:- Infosys technologies Ltd directed to exclude from comparability analysis based on the reason of comparable company is having huge brand value.The honourable Bombay High Court in case of CIT versus Pentair water India private limited [2016 (5) TMI 137 - BOMBAY HIGH COURT] has held that where comparable has multiple times of turnover over the size of the assessee, same is not comparable. Wipro Ltd’s turnover is ₹ 9668 crores against the assessee’s total sales and turnover is of ₹ 17 crores. The turnover of the comparable is more than 500 times the size of the assessee - Following case of M/S. PENTAIR WATER INDIA PVT. LTD. [2016 (5) TMI 137 - BOMBAY HIGH COURT] we direct the learned transfer pricing officer/assessing officer to exclude Wipro Ltd as a comparable company from the comparability analysis. Persistent Systems Ltd need to be rejected as relying on EQUANT SOLUTIONS INDIA PVT. LTD. VERSUS DCIT, CIRCLE 3, GURGAON [2016 (1) TMI 1260 - ITAT DELHI]