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2023 (4) TMI 841 - AT - Income TaxTP Adjustment - Comparable selection for ITES segment - exclusion of (i) Infosys BPO Limited, (ii) SPI Technologies Pvt. Ltd. and (iii) Eclerx Services Limited - HELD THAT:- We find for identical assessment year, the Tribunal in the case of M/s.Global E-Business Operations Pvt. Ltd [2022 (11) TMI 1139 - ITAT BANGALORE] excluded the above three companies on account of functional dissimilarity with that of ITES segment. Thus we direct the TPO to exclude above three companies from the list of comparables and re-compute the ALP of the international transaction. Grant of Working Capital Adjustment - In the view of the ruling in the case of M/s.Huawei Technologies India (P) Ltd. v. JCIT [2018 (10) TMI 1796 - ITAT BANGALORE] the basis of rejection of the relief by the DRP is no longer valid. We therefore, direct the AO/TPO to consider the workings in the light of the aforesaid ruling and allow appropriate adjustment in arriving at an arm’s length price. Seeking inclusion of three companies, namely, (i) Informed Technologies Limited, (ii) Ace BPO Services Pvt. Ltd. and (iii) Crystal Voxx Limited - As per relevant finding of the Tribunal in the case of M/s.Global E-Business Operations Pvt. Ltd [2022 (11) TMI 1139 - ITAT BANGALORE] we restore the issue raised to the AO / TPO. The AO / TPO shall consider the issue afresh in accordance with law.
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