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2020 (6) TMI 712 - AT - Income TaxTP Adjustment - comparable selection - Addition in relation to international transaction of provision of software development services rendered by the assessee to its Associated Enterprises - HELD THAT:- Considering the functional profile and extraordinary event of acquisitions Larsen & Toubro Infotech Ltd. cannot be held to be a valid comparable and thus has to be excluded from the final set of comparable. M/s. Tata Elxsi Ltd. be rejected on functional dissimilarity. Exclusion of the concern Cybercom Datamatics Information Solutions Ltd. - The assessee before us is solely engaged in the provision of software development concern hence, where the concern was also a product company, margin of the said concern cannot be included for benchmarking the ALP of the international transaction undertaken by the assessee. Accordingly, we direct its exclusion from the final set of comparable. Once the above said concerns are excluded then no upward adjustment needs to be made in the hands of the assessee while determining the ALP of the international transaction of provision of software development services by the assessee to its AE - Decided in favour of assessee.
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