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2023 (3) TMI 1220 - AT - Income TaxTP Adjustment - Comparable selection - turnover filter - HELD THAT:- Admittedly, on turnover filter, we are consistently holding that companies having above Rs.200 Crores turnover from the specified segment cannot be considered as comparables to assessee whose turnover in the said segment is less than Rs.200 crores. In the present case, there is no dispute that the turnover of the above companies is above Rs.200 crores as against the turnover of assessee company from the said segment is Rs.64.71 crores. See M/S. ACI WORLDWIDE SOLUTIONS PRIVATE LIMITED [2022 (5) TMI 1491 - ITAT BANGALORE] We direct the AO/TPO to exclude 3 comparables in ITeS segment and 9 comparables in software development segment as the turnover are over Rs.200 crores. Ordered accordingly. Functional dissimilarity - Exclude the company M/s. Datamatics Business Solutions Ltd. from the list of comparables as this company is a KPO company and not comparable to assessee company. Manipal Digital Systems Pvt. Ltd. is directed to be excluded from the list of comparables as functionally dissimilar. CES Limited be excluded from the list of comparables as it is providing both BPO and KPO services, cannot therefore be held as comparable. Charging of interest u/s 234A & 234B - As submitted assessee filed return of income within the time stipulated in section 139(1) of the Act and as such there was no delay in filing the return of income - HELD THAT:- The levy of interest u/s 234A of the Act is bad in law. In our opinion, this requires to be verified at the end of the AO if the return has been filed within the due date prescribed u/s 139(1) of the Act, there cannot be any levy of interest u/s 234A of the Act. With regard to levy of interest u/s234B of the Act, which is consequential and mandatory in nature and to be computed accordingly.
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