9911796707
TMI Blog2014 (12) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... w.s 144C of the Income-tax Act, 1961 (in short the 'Act'). 2. The assessee-company is a wholly owned subsidiary of its eponymous UK based entity. It is engaged in the business of developing computer software and engineering technology for three dimensional structural modeling and detailing. The assessee had filed its return on 28.6.2009 admitting NIL income. The same was 'summarily' processed. This was followed by a 'scrutiy'. The Assessing Officer noticed assessee's software export transactions with its parent and UAE based Associated Enterprises(AEs) of Rs. 14,80,03,188/- and Rs. 5,34,27,206/- respectively, totalling to Rs. 20,14,30,394/-. He made a section 92CA(1) reference to the Transfer Pricing Officer(TPO) to determine the 'ALP' the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g) and Eclerx Services Ltd but rejected those pertaining to M/s Genesys International, KLG Systel and Neilsoft Ltd. He averaged 'PLIs' of the remaining three entities to 32.81%, compared it to that of the assessee's @ 10.54% resulting in the impugned upward adjustment. The Assessing Officer passed consequential draft assessment order on 27.1.2013. 5. The assessee filed objections before the Dispute Resolution Panel ('DRP') on 25.4.2013 inter alia challenging the comparability of the two entities namely M/s Genesys International and KLG Systel (supra). The Panel in its directions dated 20.12.2013 has upheld the TPO's action qua Genesys International as under: "i) Genesys International Corporation Ltd: The Assessee has submitted that the TP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hardware and Software. TPO has ignored the other services provided Navigation maps, LiDAR, Photogrommetry Remote Sensing services, Utility Services, Image Processing, Surveying, Business, Geographics & Logistics, Cadastral Mopping, City Scope and Telecommunications (Location based Services) when comparing the functions of both assessee and Genesys. Hence it is submitted that the functions of Genesys are not comparable with that of the assessee and the TPO's conclusions are not based on correct appreciation of the functions of Genesys and hence to be dropped. This Panel has considered all the arguments and counter arguments made by the Assessee and the TPO. However, this Panel has reached to the conclusion that Genesys International Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral detailing services. The TPO records the assessee to be engaged in engineering support and development section producing fabrication details in steel frames for manufacturing. Its design engineering section develops connection patterns for steel section. The TPO also states it to be producing models, connection design and detailed drawings. These facts indicate that the assessee offers engineering and structural designing services in its engineering field. As against this, Annexure 1 attached with the TPO's order demonstrates that M/s Genesys International's core functions are both engineering as well as geospatial services. The former limb further specifies the services to be as under: "The team of Genesys has significant experience mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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