Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (3) TMI 1021 - AT - Income TaxTP Adjustment - comparable selection - functional dissimilarity - HELD THAT:- Assessee rendered Information Technology Enabled Services [ITES] to its AE, thus companies functionally dissimilar with that of assessee need to be deselected from final list. We uphold the exclusion of Genesys International Corporation Ltd., and Mold-tek Technologies Ltd., by the CIT(A) and dismiss the relevant grounds of appeal of the revenue. We also direct exclusion of the following six companies sought by the Assessee in its appeal, viz., Accentia Technologies Ltd., Acropetal Technologies Ltd., Crossdomain Solutions Pvt. Ltd., Eclerx Services Ltd., Infosys BPO Ltd., and WIPRO Ltd. We also direct the TPO while giving effect to this order to verify the correctness of the claim of the Assessee with regard to incorrect profit margin of comparable companies considered by the CIT(A) in the impugned order as stated in the application filed u/s.154 of the Act and if found correct, adopt the correct profit margins as reflected in the TPO’s order. The TPO shall recomputed the ALP in the light of the directions given above after affording opportunity of being heard to the Assessee.
|