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2023 (9) TMI 605 - ITAT DELHI
TP Adjustment - comparable selection - HELD THAT:- Cybercom Datamatics Information Solutions Ltd. -M/s Cybercom Datamatics as a right comparable to M/s Steria India Ltd. for software development services and the facts of the instant case are identical to the facts of the Steria India Ltd.[2020 (10) TMI 24 - ITAT DELHI] - Since the primary conditions are met with, we hold that Cybercom Datamatics Information Solutions Ltd. can be considered as a right comparable.
Mindtree Ltd. - At heading "quantitative details" it is clearly mentioned that the assessee is involved in software development services only and accordingly no other segment is applicable in the case of the assesee. Thus the assessee contention about no segmental information is not tenable. Further, with regard to the intangible of Rs. 6.7 crore comes to 0.2% of turnover of Rs. 3031.6 crore. However, the assessee also owns intangible of Rs. 6.03 crore including goodwill, which is 13.85% of turnover of Rs. 43.53 crore. Thus this contention of assesssee is without any basis and thus based on the above analysis, the assessee company is functionally similar comparable to M/s Mindtree Ltd.
Persistent Systems Ltd. - We find that the turnover is within the acceptable range, the FAR matching, the segmental information is not required as there is single common segment of revenue and in the absence of financial implication on the occurrence of extraordinary events and having found intangibles being 1.35% as negligible and same with the R&D activities which is 0.3% of the turnover and hence, we hold that Persistent Systems Ltd. can be considered as a right comparable.
Tata Elxsi Ltd. - The case was selected by the assessee itself in the A.Y. 2012-13. The turnover of the company’s 20 times that of the company which is within the acceptable range and the FAR has been similar, hence, we hold that it can be considered as a right comparable.
Comviva Technologies Ltd. - By claiming that the company is not functionally comparable to the assessee company and also it has high turnover. At the outset, it is seen from the records and the assessee written contentions that this company was in the list of assessee's own comparables and both at the stage of TPO as well as DRP. Since, this comparable has nor be examined by the authorities below, in the fitness of things, the matter is referred to the file of the TPO/DRP to examine the issue afresh.