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2024 (2) TMI 523 - ITAT MUMBAITP Adjustment - comparable selection - ALP which is worked out after applying the 5% range - HELD THAT:- TPO had adopted certain criteria for rejection of comparables as highlighted above. If those criteria itself are adopted on the comparables which has been chosen by the ld. TPO and applying the filters adopted by him on the final set of comparables selected by him under ITES and IT segment, then as noted by the CIT (A) the arithmetic mean in ITES segment comes to 13.73% and in IT segment comes to 17.51%. In that case, in ITES segment margin shown by the assessee and margin which has been determined falls within the tolerance limit of +/- 5% as provided in proviso to Section 92CA which was applicable prior to 01/10/2009, then assessee’s price of Rs. 30,29,93,009/-, which is well within the tolerance range, because -5 comes to Rs. 29,28,59,642/- and +5% comes to 32,36,86,978/-. CIT (A) has correctly held that in such a case, no adjustment is called for. Similarly, in software services, the assessee’s price is Rs. 7,39,80,534/- whereas +/-5% range comes between Rs. 7,18,98,974/- to Rs. 7,94,67,787/-. Accordingly, no adjustment can be made. Thus, we do not find any infirmity in the order of the ld. CIT (A) and the same is confirmed. Accordingly, the appeal of the Revenue is dismissed.
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