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2018 (2) TMI 1147 - AT - Income TaxTPA - comparable selection criteria - MAP selection - Held that:- Where part of the same transaction both in IT segment as well as ITEs Segment margins of 15.70% and 14.68% have been accepted by the assessee and by the revenue authorities. Now for the same nature of transactions it would be very difficult to accept assessee’s margin of 13% or that of the TPO who has applied higher margin. Accordingly, in wake of MAP settlement, we hold that for the Software Development Services (IT service) the profit margin for the assessment year 2007-08 should be taken as 15.70%; and for the 2008-09 it should be taken as 15.91%; whereas, in the ITeS segment the profit margin for the assessment year 2007-08 should be taken as 14.68%; and for AY 2008-09 it should be taken as 14.89%. Thus, we direct the TPO to make the adjustment after taking into the net profit margin as adopted/ agreed in the MAP to benchmark the transaction of non US AE also. In view of the above, the grounds relating to transfer pricing adjustment are treated as partly allowed. Non granting of TDS at source - Held that:- We direct the AO to verify the same and allow in accordance with law.
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