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2023 (10) TMI 251 - AT - Income TaxTP Adjustment - Comparable selection - Functional dissimilarity - HELD THAT:- Exclude Scarecrow Communications Ltd. from the list of comparables to determine the ALP of international transactions. Axience Consulting Pvt. Ltd. Company ought to be excluded as it is functionally not comparable to the Assessee. Dun & Bradstreet Information Services India Pvt. Ltd.be excluded as Functionally dissimilar. Pressman Advertising Ltd. as stated that the company’s business activity falls within a single business segment i.e. advertising, selling of space for advertisement in print media and public relations and hence no additional disclosure other than those made in the financial statements are required under indas 108 “operating segments”. Thus it is clear that under the advertising services, this company also earns revenue from selling of space for advertisement in print media and public relations for which no bifurcation has been provided. In any event, advertisement services provided by this company also cannot be compared to the services rendered by assessee to its AE under the marketing support services which is limited to presale support activities. Lintas India Pvt. Ltd. as Functionally dissimilar as providing advertising services and the principle business activity has been described in the annual report to be advertising and marketing communications. The revenue recognition by this company has been mentioned to be an advertising agency catering services to much number of clientele. Exclude this company M/s. Majestic Research Service & Solutions Ltd. from the list of comparables on the basis of functionality and dissimilarity. Cheil India Pvt. Ltd. company is engaged in the business of advertising, communication, publicity and merchandising including undertaking market research, planning and providing consultancy services and training in the same field. There is no segmental details available and the entire revenue is disclosed as revenue from sale of services. We do not find this company to be functionally similar with that of assessee. Accordingly, we direct this comparable to be excluded. Kestone Integrated Marketing Services Pvt. Ltd. be rejected as not functionally comparable to the assessee and passes all filter applied by the assessee. Interest on delayed receivables - We direct the AO/TPO to apply LIBOR rate for credits beyond 60 days only.
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