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2023 (7) TMI 125 - AT - Income TaxTP adjustment - comparable selection - HELD THAT:- Exclude Mind Tree Ltd. from the list of comparables to determine the ALP of international transactions as functionally dissimilar, diversified operation, significant R&D spend, ownership of intangibles. L&T Infotech Ltd be excluded as it is software product company and segmental information on SWD services was not available. Infobeans Technologies Ltd be excluded as it categorises the diversify services provided by this company under software development segment. We also note that this company is basically into application development for web and mobile and provides customised services to its offshore clients comprising. Entire revenue received by this comparable ease under one single segment of sale of software. This company also owns software licenses. This comparable cannot be considered to be functioning in 100% risk mitigated environment and is a full-fledged enterprise. Such a comparable cannot be compared with a captive service provider like assessee. Persistent Systems Ltd. and Infosys Ltd.to be excluded as cannot be considered to be functioning in 100% risk mitigated environment and is a full-fledged enterprise. Such a comparable cannot be compared with a captive service provider like assessee. Include I2T2 India Ltd. and Infomile Technologies Ltd. in the list of comparables for determining the ALP of international transactions.
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