TMI Blog2014 (4) TMI 1089X X X X Extracts X X X X X X X X Extracts X X X X ..... s involving specialized knowledge and domain enterprise, i.e. KPO companies, and the said entities cannot be taken as comparable for the purpose of determining ALP of the transactions of the assessee company with its AE. Further, in the case of Market Tools Research (2013 (12) TMI 414 - ITAT HYDERABAD), it has been held that Eclerx Services cannot be taken as a comparable in view of the extraordinary profits of that company and that the company was engaged with knowledge process outsourcing business, which is distinct and different from the assessee’s business. Moldtek Technologies Ltd., in the proceedings for the assessment year 2008-09, in assessee’s own case, the DRP has accepted the assessee’s contention that that company cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Vodafone India Services Pvt. Ltd. (ITS 95 ITAT 2013(Mum)-TP) and of the Delhi Bench of the Tribunal in the case of Agilent Technologies International P. Ltd. (ITS 165 ITAT 2013(Del)-TP). It is further submitted that rejection of comparables having higher turnovers is not correct, because there is no economic rationale given by the taxpayer or by the Tribunal as to why high turnover companies be excluded for comparison. In service industry, turnover does not play any significant role as far as the margins are concerned. A turnover criterion should not be applied in case of an entity which operates on accost plus pricing model. It is also submitted placing reliance on the decision in the case of Symantic Software Solutions Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rx Services Technologies, the Learned Departmental Representative strongly supported the order of the Assessing Officer submitted that the CIT(A) was not justified in excluding this company from the list of comparables. He has filed elaborate written submission reiterating his contentions. 7. The learned counsel for the assessee, on the other hand, relied on the order of the CIT(A) and submitted that there were unusual events like merger etc., in the case of Moldtek Technologies, and abnormal profits in the case of Eclerx Services and these companies are not comparable to the assessee. He also placed reliance on the decision of the Special Bench in the case Maersk Global Services Centres(India )Pvt. Ltd. (ITA 7466/Mum/2012), dated 7.3.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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