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2019 (5) TMI 434 - HC - Income TaxTP adjustment - excluding Infosys Technologies Ltd. from the list of comparables for determining ALP - HELD THAT:- The Tribunal while accepting the plea of the assessee had recorded that the assessee is providing services of commissioning of software embedded in the equipment supplied by M/s ZTE Telecom to its customers in India. The services provided by the assessee also includes localization and customization and is engaged in providing low end software services. The requirements of and specifications provided by the AE(s) that ZTE India Pvt. Ltd. provides software support services. Thus, neither it is engaged in end to end development of a product nor does it own any products. The assessee diagnosis and correct the software and further updates for the bugs in those software. It also performed routine maintenance for the software whereas the Infosys Technologies Ltd. operates at full fledged risk and perform the services of application design, software engineering and the technology lapse. The assessee was not even the developer of the software but merely providing software support services. As concluded that the Infosys Technologies Ltd. could not be treated to be a comparable in the present case for assessing ALP and, thus, it directed the TPO to exclude Infosys Technologies Ltd. from the comparability analysis of software support systems segment of the assessee while determining Arm's length price of international transactions Further, Delhi High Court in CIT v. Agnity India Technologies Pvt. Ltd. [2013 (7) TMI 696 - DELHI HIGH COURT] had held that in similar line of business as that of the assessee the Infosys Technologies Ltd. could not be treated to be a comparable while determining Arm's Length Price of International Transactions. No substantial question of law
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