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2023 (10) TMI 688 - AT - Income TaxAssessment u/s 143(3) r.w.s. 144C(13) r.w.s. 144B pursuant to the directions of DRP - final assessment order passed by the Ld.AO as barred by limitation as it is passed beyond the maximum time prescribed u/s. 144C(13) - HELD THAT:- DRP directions were received by the faceless assessment unit that had the jurisdiction to pass the assessment order on 04.07.2022. We also note that an email was sent from the office of the DRP-1, Bengaluru to the DCIT, Transfer Pricing (1)(1)(1), Bangalore on 01.07.2022. Thus in our view, the Ld.AO has passed the impugned assessment order as contained in section 153 i.e., within one month from the end of the month in which such direction is received. Comparable selection - application of turnover filter by adopting the upper turnover filter of Rs. 200 crores - This Coordinate Bench in case of Altair Engineering India Pvt. Ltd [2023 (4) TMI 674 - ITAT BANGALORE] has noted that the turnover of the four comparables sought for exclusion by assessee in the present case exceeds Rs. 200 crores whereas the assessee’s turnover under ITeS segment is only Rs. 78.66 crores. Respectfully following the above, Infosys BPM Services Pvt. Ltd., Motif India Infotech Pvt. Ltd., Eclerx Services Ltd. and MPS Ltd. stands excluded. Domex E Data (P.) Ltd. has been treated to be a KPO whereas the assessee before us is a contract service provider with limited risks. Manipal Digital Systems (P.) Ltd.- As no segmental details available in respect of this comparable, in order to understand the earnings of the company from ITeS segment, it cannot be considered to be a comparable with that of assessee. Respectfully following the view expressed by Hon’ble Delhi High Court in case of Rampgreen Solutions (P.) Ltd [2015 (8) TMI 931 - DELHI HIGH COURT] we direct the Manipal Digital Systems (P.) Ltd. to be excluded from the final list. Vitae International Accounting Services (P.) Ltd is carrying on business of data processing, handling back office functions and rendering ITeS to their clients abroad using computer software. The present assessee before us is also the contract service provider with absolutely minimal risk. The only segment with which this company earns income is from sale of services being processing fees. This comparable carries out the basic ITeS services similar to that of assessee and therefore is held to be comparable. Accordingly, we direct this comparable to be included in the final list. Exclusion of Ultramarine & Pigment Ltd. company has spent an amount of Rs. 3821.72 lakhs (page 61 of the AR) as against total revenue of Rs. 28252.99 lakhs which comes to 13.52%. Thus, the company fails the employment cost filter adopted by the TPO Exclusion of I Services India (P.) Ltd.as it was not reflected in the search matrix of the TPO - Merely because the comparable does not appear in the search process by the TPO, it cannot be excluded if assessee is able to file the annual reports which are verifiable. As relying on Prism Networks [2022 (2) TMI 1296 - ITAT BANGALORE] we accordingly, remand this comparable to the Ld.AO/TPO to reconsider it in the light of the annual reports that will be filed by assessee. In the event they are found to be functionally similar with that of assessee, the same may be included in the final list.
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