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2023 (12) TMI 984 - DELHI HIGH COURTTP Adjustment - building design services rendered by assessee - assessee had taken recourse to the ratio of operating profit and total cost in arriving at the PLI - Tribunal justification in rejecting the Profit Level Indicator (PLI) (which is a ratio of operating profit to total cost) adopted by the AO - as submitted that since separate segmental accounts were not available, it was difficult to segregate the cost incurred by assessee in the deployment of employees concerning AEs and non-AEs - HELD THAT:- As assessee had maintained segmental accounts, and accounts vis-a-vis salary expenditure were maintained project-wise, the employees deployed with regard to the transactions entered with AEs were identifiable. The conclusion arrived at by the DRP that common employees were allocated was a finding that did not emerge from the record. The Tribunal evidently was of the view that the employees deployed with AEs and non-AEs were identifiable as the accounts were maintained project-wise.The view taken by the DRP that hourly worksheets of employees were not maintained was unsustainable, as there was no such requirement in law. This conclusion was reached by the Tribunal also for the reason that salaries to employees were not paid on an hourly basis. Given the aforesaid findings of fact, in our view, the Tribunal correctly concluded that the PLI had been properly computed by the respondent/assessee. Tribunal justification in rejecting M/s Korus Engineering Solutions Pvt. Ltd. as a comparable - According to us, the DRP made no attempt to establish as to how Korus was functionally comparable with assessee. It is for this reason perhaps that the Tribunal stated that the information which was obtained from the website of Korus was “sketchy” and therefore Korus could not be used as comparable to benchmark international transactions entered into between the respondent/assessee and its AEs. Having regard to the foregoing, we are of the opinion that the Tribunal has returned findings of fact and adopted the correct approach qua both issues, and hence no interference is called for with the impugned order. No substantial question of law arises.
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