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2021 (5) TMI 481 - AT - Income TaxTP Adjustment - comparable selection - functional dissimilarity - HELD THAT:- Assessee is primarily engaged in providing software development and software consultancy services to AEs. These services have been collectively referred as 'Software services', thus companies functionally dissimilar with that of assessee need to be deselected. Thinksoft Global Services Limited - Having perused the Director's report, Annual report of Thinksoft Global Services Limited, it is evident that datas are available in public domain as the company is listed with the Bombay Stock Exchange. These facts were not refuted by the Ld. DR. Further, the Ld. DR also could not bring on record any materials contrary to these facts. Having heard the parties herein, taking totality of facts and circumstances, we direct the AO/TPO to include Thinksoft Global Services Limited as comparable Company with that of the assessee company in the final list of comparables. Thus, Ground No. 8 raised in appeal by the assessee is allowed. Exclude Cybermate Infotek Limited, Infobeans Systems Private Limited from the final list of comparable companies as regards the assessee as functionally dissimilar. Cybercom Datamatics Information Solutions Limited - It is an undisputed fact, the assessee had submitted annual report for AY 2013-14 and not for AY 2012-13. Thus, qualitative as well as quantitative data regarding this company i.e. Cybercom Datamatics Information Solutions Limited was not available before the Ld. CIT(Appeals) for proper adjudication to decide whether this company should be excluded from the final list of comparables or not. In view thereof, in the interest of justice, we set aside the order of the Ld. CIT(Appeals) on this comparable and remand the same to the file of the AO/TPO to determine from company's annual report for the year under consideration in respect of Director's report, notes of accounts and audit report regarding the functional comparability of the company. Thirdware Solutions Limited - As DR submitted that this issue may be remanded to the file of the AO/TPO for detailed factual verification based on annual report and other relevant documents in order to verify the nature and scope of the function of Thirdware Solutions Limited. The Ld. Counsel for the assessee did not raise any objection to this proposition. We are of the considered view, in the interest of justice, we agree with the submissions of the Ld. DR and considering the facts and circumstances, we restore this ground to the file of the AO/TPO for determining functionality of this company
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