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2023 (6) TMI 817 - AT - Income TaxTP adjustment - international transaction relating to provision of software development services to the overseas AEs - Comparable selection - HELD THAT:- Larsen & Toubro Infotech Ltd. cannot be comparable to the assessee as it is in diversified activities. The company has also developed various products and created marketing intangibles. Further, being a part of the Larsen & Toubro group, it has substantial brand value. Infobeans Technologies Ltd.being functionally similar to the assessee, is a comparable. Cybercom Datamatics Information Solutions Ltd. company, in addition to software development services, is providing various other consultancy, advisory, technical and surveyor of information services. Whereas, segmental information relating to its activities are not available in the Annual Report. Considering the aforesaid factors, various Benches of the Tribunal, including Delhi Benches have excluded this company from being treated as comparables. Maintaining judicial consistency, we hold that the company cannot be treated as comparable to the assessee. Adjustment on account of interest on outstanding receivables from the AEs - while rejecting assessee’s submission, the TPO computed interest at the rate of 4.329% in respect of receivables, which remained outstanding beyond the period of 60 days from the date of issue of invoice - HELD THAT:- While considering identical issue in assessee’s own case in assessment years 2010-11, 2011-12, 2012-13, the Tribunal has deleted similar adjustments made by the TPO. Identical view was expressed by the Tribunal while deciding assessee’s appeal for assessment year 2014-15 [2019 (5) TMI 621 - ITAT DELHI] after following the decision of Kusum Healthcare Pvt.ltd. [2017 (4) TMI 1254 - DELHI HIGH COURT] decided the issue in favour of the assessee.
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