Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 97 - AT - Income TaxTP Adjustment - comparable selection - Functional dissimilarity - HELD THAT:- The assessee had provided Information Technology Enabled Services (ITES) to its Associated Enterprises (AE) during the year under consideration and the said international transaction has been benchmarked by the assessee using Transactional Net Margin Method (TNMM) as the Most Appropriate Method (MAM). The Profit Level Indicator (PLI) used by the assessee is Operating Profit to Total Operating Cost (OP/TC). The assessee’s margin is 32.01%. Companies functionally dissimilar with that of assessee need to be deselected from the final list. We direct the ld. TPO to include R.Systems International Ltd., CG-VAK Software and Exports Pvt. Ltd., and Jindal Intellicom Pvt. Ltd. and exclude E-Clerx Services Ltd., in the final list of comparables. When this is done, according to ld. AR , the assessee would be well within the tolerance band of +/-5% statutorily provided in the Act and hence, its pricing with AE would be at arm’s length. Cross objections raised by the assessee by way of original grounds, in respect of aforesaid comparables are partly allowed and additional ground raised by the assessee is allowed.
|