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2024 (1) TMI 412 - AT - Income TaxTP adjustment made in Manufacturing segment - MAM selection - CUP or TNM - HELD THAT:- In view of the consistent with the view taken in the earlier year, we set aside the transfer pricing adjustment made in the manufacturing segment and direct the TPO/AO to re-compute ALP of that segment under TNM method. TP Adjustment made in respect of fees paid for technical support services - Comparable selection - HELD THAT:- M/s Excel Infoways Ltd is not a good comparable company which is in the process of closing down its ITES segment and also because of the factum of fluctuating margins, could not be selected as functionally comparable to the assessee. Following the same parity of the reasons, we hold that the said concern i.e. Excel Infoways Limited, because of different factors and also fluctuating to be excluded from final set of comparables. M/s Hartron Communications Ltd. cannot be considered as a comparable company as it has achieved extraordinary profits during the relevant assessment year and further it has diversified activities and therefore functionally dissimilar to that of the assessee company. Appeal filed by the assessee is treated as allowed.
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