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2023 (12) TMI 633 - AT - Income TaxTP Adjustment - Comparable selection - whether huge profit or a huge turnover, ipso facto lead to company's exclusion? - HELD THAT:- As following the foot prints of Obopay Mobile Technology India Private Ltd [2018 (7) TMI 2129 - KARNATAKA HIGH COURT], Avaya India (P.) Ltd [2019 (7) TMI 1279 - DELHI HIGH COURT] and in the case of Cadence Design Systems (I.) (P.) Ltd [2018 (4) TMI 1574 - ITAT NEW DELHI] we hold that the turnover and brand name are relevant criteria for choosing companies as comparables in determining the ALP in Transfer Pricing cases. We, therefore, direct the learned Assessing Officer/learned TPO to exclude the entities[Infosys BPM Services Pvt. Ltd., and eClerx Services Ltd] from the list of comparables as per above criteria. Denial of working capital adjustment - As in view of the fact that for the assessment years 2009-10 and 2011-12, working capital adjustment is said to have been granted to the assessee apart from in sister concern’s case of Parexel International Clinical Research Private Limited [2023 (3) TMI 1429 - ITAT BANGALORE] we set aside this issue to the file of the learned Assessing Officer/learned TPO to decide the issue afresh in the light of the above, after obtaining necessary information from the assessee. Grounds are accordingly treated as allowed for statistical purposes.
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