Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (1) TMI 911 - AT - Income TaxTP Adjustment - comparable selection - TPO had rejected Jindal Intellicom Pvt. Ltd. and R System International Limited as non comparable companies while determining the Arm's Length Price (ALP) - HELD THAT:- Assessee is a captive entity (i.e. risk mitigated entity) mainly engaged in providing Information Technology (IT) enabled services in the nature of call center and low end back office support to its associated enterprises (AE) and billing them at cost plus 15%. Jindal Intellicom Private Limited company has been accepted as comparable company for assessment years 2011-12, 2012-13 and also 2014-15. That further, this company does not earn any revenue from sale of products. The only area of earning of revenue is from sale of services. This company is engaged in the call center business and hence, comparable company with that of the assessee. The TPO/AO is directed to include Jindal Intellicom Private Limited in the final list of comparables in respect of the assessee while determining the TP adjustment. R. System International Limited having different financial year cannot be a comparable company with that of the assessee company. It has been, therefore, rightly rejected by the TPO as well as DRP and that view is, hereby, sustained. Thus, ground raised in appeal by the assessee is partly allowed. Ninestars Information Technologies Limited company is functionally non comparable with that of the assessee company. That also, there is also non availability of reliable segmental report in respect of this company. We direct the TPO/AO to exclude this company from the final list of comparables with that of the assessee company.
|