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2018 (3) TMI 1588 - BOMBAY HIGH COURTTPA - comparable selection - excluding Informed Technologies India Ltd. from the set of comparable companies on account of its high profit margin accepted Treating companies engaged in various different activities classified broadly as ITES can be treated as functionally comparable - Held that:- For the purposes of arriving at the Arms Length Price (ALP) of the services rendered by it, the Revenue placed reliance upon M/s. Maple E-Solutions Ltd. as a comparable. However, M/s. Maple Solutions Ltd. is a BPO providing call service centre. The Tribunal on examination of the activities carried out by the respondent and the activities carried out by M/s. Maple E-Solutions Ltd., found that they are functionally different and, therefore, could not be used as a comparable in arriving at ALP. The impugned order held that merely because the call centre business is also understood broadly as an IT enabled services, would not by itself lead the respondent assessee and M/s. Mapple E-Solutions Ltd. to become a comparable, looking at the functional difference between the two. The view taken by the Tribunal on the facts is a reasonable and possible view. Excluding Maple E Solutions from the comparable set on the ground that there had been complaints of fraud etc. against the directors of the company - Because of the unreliability of the data of M/s. Maple E-Solutions Ltd., it could not be used as a comparable to determine the ALP of the respondent assessee's services. The above view of the Tribunal has not been shown to be perverse in any manner.
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