Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (7) TMI 772 - AT - Income TaxTransfer pricing adjustment -DRP and AO/TPO rejecting the detailed benchmarking analysis conducted by the appellant and embarking on a fresh search for comparables - adopting the financial data for a single year(i.e the financial year 2007-08) of the comparable as against multiple year data considered by the appellant - Held that:- Eclerx Services Ltd - Having regard to the nature of the services provided by the assessee to its group concern in comparison to the nature of services provided by eClerx Service Ltd., to its client we do not find any reason to take a different view that of the Special Bench in case of M/s Maersk Global India Pvt.Ltd. [2014 (3) TMI 891 - ITAT MUMBAI] we hold that eClerx Services Ltd is functionally dissimilar to that of the assessee in sofar as the ITES segment is concerned and therefore, the said Co. cannot be compared with the assessee Co. for the purpose of determining ALP in respect of international transactions of providing ITES to its associated enterprise. Accordingly, we direct the AO/TPO to exclude eClerx Services Ltd., from the set of comparables selected by the TPO. Mold Tex Technologies Ltd. - nature of the functions performed by the Mold Tek which have been examined by the Special Bench in M/s Maersk Global India Pvt.Ltd. [supra] and found is not compared with the low end ITES service provider Co. we hold that this Co. is functionally not comparable with that of the assessee. Accordingly, we direct the AO/TPO to exclude Mold Tek from the list of comparables. In view of the statement and plea of the learned AR we direct the AO/TPO to re-compute the ALP after excluding the above two Co. namely M/s Eclerx and M/s Mold Tek (Supra) and then determine the adjustment, if any after giving the benefit of tolerance range of +=5%. Exclusion of communication expenses/lease line charges from export turnover for the purpose of computation of deduction u/s 10A - Held that:- if the communication expenses are excluded from the export turnover then, the same should also be excluded from the total turnover in view of the judgment of jurisdictional High Court in the case of M/s Tata Elxsi Ltd. reported in [2011 (8) TMI 782 - KARNATAKA HIGH COURT ] - Decided in favour of assessee.
|