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2023 (11) TMI 806 - AT - Income TaxTP Adjustment - comparable selection - rejecting M/s. Accentia Technologies Limited M/s. Eclerx Services Ltd., and M/s. TCS E-Serve as comparables - HELD THAT:- Accentia being KPO as held in Rampgreen Solutions (P.) Ltd. vs. CIT [2015 (8) TMI 931 - DELHI HIGH COURT] and quite different from the BPO profile of the assessee, we see no error in the conclusion drawn by the CIT(A) for rejecting this comparable. Eclerx Services Limited - As business model of the assessee is quite different from ‘Eclerx’ which provides data analytics and processing solutions to some of the largest brands in the world and is recognized as experts in chosen markets financial services, retail and manufacturing and is a KPO. In view of different functioned profile, we thus see no justification in the action of the Revenue to introduce such company in the final set of comparables as rightly held by the CIT(A). We thus decline to interfere. TCS E Serve Ltd is mainly involved in transaction processing and technology services. It carries on business of providing technology services such as software testing, verification and validation. TCS has also develop a software such as Transport Management Software and therefore, functionally this company is dissimilar to assessee company. Besides, TCS also owns huge intangible and use of Tata brand which definitely benefited this comparable and is in a different league. Furthermore, relevant segmental data not being available, such comparable cannot be used for determination of ALP. Appeal of Revenue is dismissed.
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