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2015 (9) TMI 65 - AT - Income TaxTransfer pricing adjustment - Selection of comparable Capital Trust Ltd. as selected by assessee denied by CIT(DR) - Held that:- The assessee was in the business of repair services, computer hardware and software related services, erection, commissioning and installation services. Capital Trust Ltd. was, inter alia, imparting consultancy to foreign banks not having any branches or representative offices in India. The assessee’s contention is that this consultancy segment is comparable to the services rendered by assessee. We are not inclined to accept the assessee’s contention on this ground because the consultancy service rendered to foreign banks are in no way comparable with the assessee’s business. We are not confirming the action of lower authorities on the basis of loss being incurred in two years by Capital Trust Ltd., but on the ground that functional profile being entirely different from that of the assessee. Further, we find considerable force in the argument of ld. CIT(DR) that since the consultancy segment is very meager as compared to the overall activities carried on by assessee, therefore, it cannot be held that merely because segmental details are provided, therefore, the financial consultancy to foreign bank assumes significance. We, accordingly, confirm the assessment order of AO on the issue in question. - Decided against assessee
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