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Obopay Mobile Technology India P. Ltd. Versus Deputy Commissioner of Income-Tax and Vice Versa

2016 (5) TMI 402 - ITAT BANGALORE

Selection of comparable - transfer pricing adjustment - whether comparable can be rejected on the ground that they have exceptionally high profit margins or fluctuation profit margins, as compared to the assessee in transfer pricing analysis? - Held that:- Hon'ble Bombay High Court in the case of CIT v. Pentair Water India Pvt. Ltd. [2016 (5) TMI 137 - BOMBAY HIGH COURT] has taken the view that turnover is a relevant criteria for choosing companies as comparable companies in determination of arm .....

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Assessing Officer is directed to accept the claim of the assessee in this regard. As far as the provision for bad debts are concerned, the Transfer Pricing Officer has accepted that the same would be part of operating expenses provided the same is incurred every year for at least three years and the manner in which provision is made is consistent. The assessee in reply to the query of the Transfer Pricing Officer on the above aspect has not furnished any details. We are of the view that the asse .....

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of the assessee

Computation of arithmetic mean - Held that:- We find that the detailed submissions as made by the assessee before the Dispute Resolution Panel and before us, were not made before the Transfer Pricing Officer. It was the stand of the assessee that the Transfer Pricing Officer did not confront the assessee with the various queries that were raised in his order and, therefore, the answers to those queries were provided before the Dispute Resolution Panel. The Dispute Reso .....

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lution Panel. We, therefore, deem it fit and proper to remand this issue to the Transfer Pricing Officer/Assessing Officer for fresh consideration in the light of the submissions made before us. The Transfer Pricing Officer/Assessing Officer will decide the issue in accordance with law after giving the assessee opportunity of being heard.

The Transfer Pricing Officer/Assessing Officer is directed to compute the arithmetic mean of the remaining comparable companies and allow adjustment .....

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pricing adjustment while computing total income of the assessee - Held that:- We find that the Dispute Resolution Panel has directed the Assessing Officer to allow set off as permissible in law. We are of the view that the above direction will be sufficient as the Assessing Officer is bound to give the benefit of set off, if the other requirements of law are satisfied. We, accordingly, direct the Assessing Officer to give effect to the directions of the Dispute Resolution Panel. - I. T. (TP) A. .....

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("the Act"), relating to the assessment year 2010-11. 2. The issue that arises for consideration in these appeals are relating to the addition made to the total income consequent to the determination of the arm's length price (ALP) in respect of the international transaction entered into by the assessee with its associated enterprises (AE) under section 92 of the Income-tax Act, 1961 ("the Act"). The addition made consequent to the determination of the arm's length p .....

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esolution Panel, the assessee is in appeal before the Tribunal. The Revenue is in appeal before the Tribunal challenging the reliefs allowed pursuant to the directions of the Dispute Resolution Panel. 3. The assessee is a private limited company incorporated under the Companies Act, 1956. It is engaged in two distinct business segments-(1) development and delivery of domain specific software for Obapay Inc., U.S.A., and (2) establishing, deploying and maintaining a platform for making mobile pay .....

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nd, therefore, the income from such international transaction had to be determined having regard to the arm's length price ("the ALP") as provided in section 92 and section 92C of the Act. 4. In support of the assessee's claim that the price charged by it for services rendered to its associated enterprise was at arm's length, the assessee filed a report as required by the provisions of section 92E of the Act in Form 3EB together with detailed analysis. In paragraph 4.1.1. o .....

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associated enterprise. The assessee submitted that during the previous year it had paid a sum of ₹ 3,88,63,270 to its associated enterprise, Obapay Inc., U.S.A. This payment was explained by the assessee as reimbursement of expenses incurred by the associated enterprise on behalf of the assessee in respect of its business segment of establishing, deploying and maintaining a platform for making mobile payments and facilitating related services for users in India. The break-up of the sum so .....

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The following were the relevant observations of the Transfer Pricing Officer in this regard : "The taxpayer did not appear to explain the submissions made before the undersigned on the dates given for hearing on November 20, 2013. Hence, in view of the same, the details available on record are examined. In respect of the seconded employees, it is seen that they have been seconded from Obopay Inc., U.S.A. Their details are as under : Name of the employee Term Position Raj Aji 18 months VP B .....

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has not furnished any information regarding the nature of functions performed by these two seconded employees. As reproduced above, all that the taxpayer has offered as an explanation is that these employees function in line with their designation. The market in which they were to perform was local market. The taxpayer is a 100 per cent. subsidiary of Obopay, Mauritius, which in turn is a 100 per cent. subsidiary of Obopay, U.S.A. Its main functions are rendering software services in the nature .....

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enterprise. To facilitate this function, the taxpayer has taken employees at the level of Vice-Presidents by way of secondment to market the products of the associated enterprise. The income from this segment is only ₹ 9,584 as against the expense of ₹ 21,83,69,270. Thus, the taxpayer is bearing the burden of marketing the product of its associated enterprise without any compensation. Not only is it not getting compensated, it is also bearing the salary cost and other costs of its to .....

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h the determination of the international transactions conducted by the taxpayer by aggregating them." 6. The assessee adopted the transactional net margin method (TNMM) as the most appropriate method for determining the arm's length price. Operating profits to cost was adopted as the profit level indicator ("the PLI"). The segmental profit and loss of the assessee was shown as follows : Segmental profit and loss of the appellant Particulars Software segment (Rs.) Mobile paymen .....

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) and the same was arrived at by the assessee as follows : (Rs.) Operating income 19,49,40,972 Operating expenses claimed 17,40,41,219 Operating profit 2,08,90,169 OP/OC 12% 8. The assessee claimed that its operating profit to the operating cost was within the permissible range of plus or minus variation to the arithmetic mean of operating margin on cost of comparable companies chosen by it, as provided in the second proviso to section 92CA of the Act. Therefore, the same was at the arm's le .....

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osed 9 more comparable companies. The arithmetic mean operating margin on cost of the 11 companies chosen by the Transfer Pricing Officer was 22.71 per cent. 10. The Transfer Pricing Officer computed the arm's length price and consequent addition to the total income as follows : Arm s length mean margin 22.71% Less : Working capital adjustment 1.98% Adjusted mean margin after working capital adjustment 20.73% Operating cost (A) 39,24,10,489 Arm s length price-120.73% of operating cost (B) 47 .....

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he Transfer Pricing Officer has already taken the view that the determination of the arm's length price has to be done by aggregating both the activities of development and delivery of domain specific software for Obapay Inc., U.S.A, and establishing, deploying and maintaining a platform for making mobile payments and facilitating related services for users in India, the Transfer Pricing Officer considered ₹ 39,24,10,489 (Rs. 17,40,41,219 + ₹ 21,83,69,270) as the operating cost o .....

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s Ltd., Larsen and Toubro Infotech Ltd., Mindtree Ltd., Persistent Systems Ltd., Sasken Communication Technologies Ltd. and Tata Elxsi Ltd. had to be excluded from the list of comparable companies as their turnover was in excess of ₹ 200 crores whereas the turnover of the assessee was less than ₹ 20 crores. The Dispute Resolution Panel also held that the foreign exchange flotation gain had to be regarded as part of the operating profit of the assessee and the profits margins of the a .....

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Information Systems Ltd., Persistent Systems and Solutions Ltd., R. S. Software (India) Ltd., and Thinksoft Global Services Ltd. 13. The Assessing Officer incorporated the directions of the Dispute Resolution Panel in his fair order of assessment. Aggrieved by the reliefs allowed by the Dispute Resolution Panel, the Revenue has filed an appeal before the Tribunal. The substantial grounds raised by the Revenue in this regard are as follows : "1. Turnover filter (i) The hon'ble Dispute R .....

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prescribed in rule 10B of the Income-tax Rules, 1962 and also there being no correlation between turnover and profit margin. 2. Foreign exchange loss/gain The hon'ble Dispute Resolution Panel has erred in directing to include forex gain/loss as operating in nature without ascertaining the nexus with the business activity of the taxpayer. 3. Risk adjustment (i) In so far as the issue of working capital adjustment is concerned, whether the learned Dispute Resolution Panel is justified in hold .....

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Pricing Officer to grant risk adjustment without advising any reasonable accurate method in the absence of which the Transfer Pricing Officer had not provided the same." 14. Aggrieved by the order of the Dispute Resolution Panel confirming the order of the Transfer Pricing Officer on several other aspects, the assessee has preferred the present appeal before the Tribunal. 15. We have heard the rival submissions. Learned counsel for the assessee filed before us a chart showing as to how com .....

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king up individual companies chosen by the Transfer Pricing Officer and excluded by the Dispute Resolution Panel. 16. As far as the Revenue's grievance in its appeal are concerned, the first grievance of the Revenue as projected in ground No. 1 of its appeal is that the Commissioner of Income-tax (Appeals) was not right in applying the turnover filter and excluding six companies chosen as comparable by the Transfer Pricing Officer. The Bangalore Bench of the Income-tax Appellate Tribunal has .....

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, dated November 23, 2012), the relevant observations therein are as follows (page 477) : "(1) Turnover filter Learned counsel for the assessee submitted that the Transfer Pricing Officer has applied a lower turnover filter of ₹ 1 crore, but has not chosen to apply any upper turnover limit. In this regard, it was submitted by him that under rule 10B(3) to the Income-tax Rules, it was necessary for comparing an uncontrolled transaction with an international transaction that there shoul .....

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facet of the comparability exercise. It was submitted that significant differences in size of the companies would impact comparability. In this regard our attention was drawn to the decision of the Special Bench of the Income-tax Appellate Tribunal, Chandigarh Bench, in the case of Deputy CIT v. Quark Systems Pvt. Ltd. [2010] 4 ITR (Trib) 606 (Chandigarh) [SB] ; [2010] 38 SOT 207, wherein the Special Bench had laid down that it is improper to proceed on the basis of lower limit of ₹ 1 cror .....

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saction in absolute value or in proportion to the activities of the parties might affect the relative competitive positions of the buyer and seller and therefore comparability.' 11. The Institute of Chartered Accountants of India transfer pricing guidelines note on this aspect lay down in para 15.4 that a transaction entered into by a ₹ 1,000 crores company cannot be compared with the transaction entered into by a ₹ 10 crores company. The two most obvious reasons are the size of .....

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mpany cannot be compared with the transaction entered into by a ₹ 10 crores company. The two most obvious reasons are the size of the two companies and the relative economies of scale under which they operate.' 12. It was further submitted that the Transfer Pricing Officer's range (Rs. 1 crore to infinity) has resulted in selection of companies like Infosys which is 277 times bigger than the assessee (turnover of ₹ 13,149 crores as compared to ₹ 47.47 crores of the asse .....

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relevant observations were brought to our notice : '9. Having heard both the parties and having considered the rival contentions and also the judicial precedents on the issue, we find that the Transfer Pricing Officer himself has rejected the companies which are making losses as comparables. This shows that there is a limit for the lower end for identifying the comparables. In such a situation, we are unable to understand as to why there should not be an upper limit also. What should be uppe .....

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hen companies which are loss making are excluded from comparables, then the super profit making companies should also be excluded. For the purpose of classification of companies on the basis of net sales or turnover, we find that a reasonable classification has to be made. Dun and Bradstreet and NASSCOM have given different ranges. Taking the Indian scenario into consideration, we feel that the classification made by Dun and Bradstreet is more suitable and reasonable. In view of the same, we hol .....

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ore Income-tax Appellate Tribunal in the following cases : 1. Kodiak Networks (India) Private Limited v. Asst. CIT [2012] 15 ITR (Trib) 610 (Bang) ; (I. T. A. No. 1413/Bang/2010 ; 2. Genesis Microchip (I) Private Limited v. Deputy CIT [2012] 135 ITD 533 (Bang) ; and 3. Electronic for Imaging India P. Ltd. (I. T. A. No. 1171/Bang/ 2010). 15. It was finally submitted that companies having turnover more than ₹ 200 crores ought to be rejected as not comparable with the assessee. 16. The learne .....

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income arising from an international transaction shall be computed having regard to the arm's length price. Section 92B provides that "international trans action" means a transaction between two or more associated enterprises, either or both of whom are non-residents, in the nature of purchase, sale or lease of tangible or intangible property, or provision of services, or lending or borrowing money, or any other transaction having a bearing on the profits, income, losses or assets .....

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enterprise was an international transaction attracting the provisions of section 92 of the Act. Section 92C provides the manner of computation of arm's length price in an international transaction and it provides : '92C.(1) The arm's length price in relation to an international transaction shall be determined by any of the following methods, being the most appropriate method, having regard to the nature of transaction or class of transaction or class of associated persons or functio .....

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han one price is determined by the most appropriate method, the arm's length price shall be taken to be the arithmetical mean of such prices : Provided further that if the variation between the arm's length price so determined and price at which the international transaction has actually been undertaken does not exceed five per cent. of the latter, the price at which the international transaction has actually been undertaken shall be deemed to be the arm's length price. (3) Where dur .....

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1) of section 92D and the rules made in this behalf ; or (c) the information or data used in computation of the arm's length price is not reliable or correct ; or (d) the assessee has failed to furnish, within the specified time, any information or document which he was required to furnish by a notice issued under sub-section (3) of section 92D, the Assessing Officer may proceed to determine the arm's length price in relation to the said international transaction in accordance with sub-s .....

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onal net margin method, by which,- (i) the net profit margin realised by the enterprise from an international transaction entered into with an associated enterprise is computed in relation to costs incurred or sales effected or assets employed or to be employed by the enterprise or having regard to any other relevant base ; (ii) the net profit margin realised by the enterprise or by an unrelated enterprise from a comparable uncontrolled transaction or a number of such transactions is computed ha .....

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clause (i) is established to be the same as the net profit margin referred to in sub-clause (iii) ; (v) the net profit margin thus established is then taken into account to arrive at an arm's length price in relation to the international transaction. (2) For the purposes of sub-rule (1), the comparability of an international transaction with an uncontrolled transaction shall be judged with reference to the following, namely : (a) the specific characteristics of the property transferred or se .....

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he respective parties to the transactions operate, including the geographical location and size of the markets, the laws and Government orders in force, costs of labour and capital in the markets, overall economic development and level of competition and whether the markets are wholesale or retail. (3) An uncontrolled transaction shall be comparable to an international transaction if- (i) none of the differences, if any, between the transactions being compared, or between the enterprises enterin .....

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: Provided that data relating to a period not being more than two years prior to such financial year may also be considered if such data reveals facts which could have an influence on the determination of transfer prices in relation to the transactions being compared.' 19. A reading of the provisions of rule 10B(2) of the Rules shows that uncontrolled transaction has to be compared with international transaction having regard to the factors set out therein. Before us there is no dispute that .....

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an important criteria in choosing comparables. The assessee's turnover is ₹ 47,46,66,638. It would, therefore, fall within the category of companies in the range of turn over between ₹ 1 crore and ₹ 200 crores (as laid down in the case of Genisys Integrating Systems (India) P. Ltd. v. Deputy CIT (I.T.A. No. 1231/Bang/2010) [2012] 15 ITR (Trib) 475 (Bang). Thus, compa nies having turnover of more than 200 crores have to be eliminated from the list of comparables as laid down .....

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s Technologies Ltd. 131.49" 17. The learned Departmental representative, however, relied on the decision of the hon'ble Delhi High Court in the case of Chryscapital Investment Advisors (India) P. Ltd. v. Deputy CIT [2015] 376 ITR 183 (Delhi) ; [2015] 56 taxmann.com 417 (Delhi) wherein at paragraph 3 of the said judgment the hon'ble Delhi High Court held that the mere circumstance of a company otherwise conforming to the stipulations in rule 10B(2) of the Income-tax Rules, 1962 (&quo .....

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by way of an obiter dictum and the hon'ble court was concerned only with the issue of excluding high profit making or abnormally loss making companies from being regarded as comparable companies. He pointed out that in any event the earlier decision of the hon'ble Delhi High Court in the case of CIT v. Agnity India Technologies P. Ltd. (I.T.A. No. 1204/2011 dated July 10, 2013), had taken the view that turnover was a relevant criteria in choosing comparable companies. 18. We have conside .....

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on'ble High Court, in so far as it refers to turnover, were in the nature of obiter dictum. Judicial discipline requires that the Tribunal should follow the decision of a non-jurisdictional High Court, even though the said decision is of a non-jurisdictional High Court. We, however, find that the hon'ble Bombay High Court in the case of CIT v. Pentair Water India Pvt. Ltd. [2016] 381 ITR 216 (Bom) ; (Tax Appeal No. 18 of 2015 judgment dated September 16, 2015) has taken the view that tur .....

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e assessee has to be adopted, we respectfully follow the view of the hon'ble Bombay High Court on the issue. Respectfully following the aforesaid decision, we uphold the order of the Dispute Resolution Panel excluding 6 companies from the list of comparable companies chosen by the Transfer Pricing Officer on the basis of turnover and size. 19. As far as ground No. 2 raised by the Revenue is concerned, the same relates to treating the gain on account of foreign exchange fluctuation as part of .....

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loss or gain cannot be said to be one realised from international transaction though they may form part of the gain/loss of the enterprise and, therefore, they should be excluded while determining operating cost. On the above issue, we find that the Bangalore Bench of the Income-tax Appellate Tribunal in the case of SAP Labs India Pvt. Ltd. v. Asst. CIT [2010] 6 ITR (Trib) 81 (Bang) ; [2011] 44 SOT 156 (Bang.) has taken the view that foreign exchange fluctuation gains are required to be added to .....

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ny details. We are of the view that the assessee should be afforded opportunity to explain its position on the above and the Assessing Officer is directed to consider the same in accordance with law. As far as fringe benefit tax (FBT) is concerned, the same was not considered by the Transfer Pricing Officer as part of operating cost in the case of comparables and therefore the same should also not be considered as part of operating cost of the asses see. We hold, accordingly, and direct the Asse .....

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has negative impact. This is because working capital adjustment is given to increase comparability on the uncontrolled comparables with tested party and not to provide benefit to the assessee. Incidentally, the adjustment may or may not lead to a benefit for the assessee. In the instant case wrong capital adjustment made by the Transfer Pricing Officer. (ii) Whether the learned Dispute Resolution Panel is justified in directing the Transfer Pricing Officer to grant risk adjustment without advis .....

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fer Pricing Officer/Assessing Officer. These directions, in our view, are sufficient guidelines for the Transfer Pricing Officer to allow risk adjustment. The Transfer Pricing Officer/Assessing Officer is also entitled to look into other circumstances that may be brought before it by the assessee in the proceedings pursuant to the order of the Dispute Resolution Panel and this order. 23. In the result, the appeal by the Revenue is treated as partly allowed for statistical purposes. 24. We now ta .....

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e by the assessee before the Dispute Resolution Panel on this aspect at page 376 of the assessee's paper book (paragraph 5.156) wherein the relevant details were given. The financials of this company are also placed at pages 619 to 622 of the assessee's paper book. We have considered the submissions. It is not in dispute before us that this Tribunal, in the cases of 24/7 Customer.Com.Pvt. Ltd. [2013] 21 ITR (Trib) 514 (Bang) (I.T.A. No. 227/ Bang/2010), Sony India P. Ltd. reported in [20 .....

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tion as ground for rejecting comparable companies. Consequently it is held that comparable companies having related party transaction up to 15 per cent. of the total revenues can be excluded. 25. As far as the exclusion of M/s. Kals Information Systems Ltd. is concerned, we find that for the assessment year 2010-11, in the case of a software development service provider, the Income-tax Appellate Tribunal, Hyderabad Bench, in the case of Pegasystems Worldwide India Pvt. Ltd. v. Asst. CIT (TS 488- .....

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e's contentions stating that company classified itself as pure software development service provider. Further, extracting page 22 of the annual report of the company, the Transfer Pricing Officer opined that the segmental information indicates that revenue is shown to have been earned from application software and training. Accordingly, he rejected the assessee's objections and included as the comparable company. The Dispute Resolution Panel confirmed the same. 10.1. The assessee's m .....

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ates that company is engaged in development of software and products and its inventory also indicates that the assessee has been using its readymade libraries for sales. This company was rejected in earlier year on functional analysis by the Income-tax Appellate Tribunal in the case of Planet Online Pvt. Ltd. (I.T.A. No. 464/Hyd/2014) wherein it was held that company is engaged in development of software products. Since its annual report states the same facts in this assessment year also, we are .....

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ociated enterprise transactions only and thereby making an adjustment in respect of transactions with non-associated enterprise also ; (b) not appreciating that the appellant renders mobile payment platform services to third parties and the costs relating to mobile payment platform segment cannot be considered for computing the arm's length price of the software development services rendered to associated enterprise ; (c) Concluding that the appellant is engaged in the marketing of the produ .....

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under consideration, the assessee operated in two segments, viz., software development segment and mobile payment platform segment. Under the software development segment, the assessee rendered services to its associated enterprise. Under the mobile payment platform segment, the assessee rendered services to non-associated enterprise. However, expenses which were reimbursed to the associated enterprise were incurred in connection with the mobile payment platform segment of the assessee. The rei .....

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basis of segmental results. The segmental profit and loss was part of the transfer pricing study. The summary of segmental profit and loss account is tabulated below : Particulars Software segment (Rs.) Mobile payment platform segment (Rs.) Operating revenue 19,49,31,388 9,584 Operating cost 18,41,06,107 20,83,01,489 Operating profit 1,08,25,281 (20,82,91,905) Operating profit/cost 5.88 % -99.99 % 28. It is the contention of the assessee that the segmental profit and loss for both the software a .....

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nsfer pricing adjustment. Instead the learned Transfer Pricing Officer has unilaterally considered the cost and operating revenues of both the mobile payment platform service segment and the software development segment for computing the arm's length price. This has been done without providing any opportunity of hearing to the assessee. 29. It was further contended that while computing the arm's length price only revenues and costs relating to the associated enterprise segment need to be .....

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ed with the determination of arm's length price of the international transactions conducted by taxpayer by aggregating both the segments. The relevant extract from the transfer pricing order is already given in the earlier part of this order (vide paragraph 5 of this order) and is not being repeated. It is the stand of the assessee that the above queries were raised for the first time in the final order. These queries were not raised during the proceedings under section 92CA. The action of t .....

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activity is rendered by the assessee to the associated enterprise. The associated enterprise is offering the mobile payment services outside India mostly in the U.S.A. and Kenya. It has no such business activity in India. The assessee renders mobile payment platform services to third parties and services are provided in the domestic market (in India). The mobile payment services refer to deploying and maintaining a platform for making mobile payments and facilitating related services for users i .....

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product. Also in the non-associated enterprise segment, lot of other activities like marketing, sales, legal, customer support, client management, data centre, and IT support, project management, etc., are involved. The learned Transfer Pricing Officer has assumed that whole of non-associated enterprise expenses is research and development. However, this is not correct. It involves various activities/expenses like marketing, sales, legal, customer support, etc. The contention of the Transfer Pr .....

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elopment of mobile payment platform, the product developed by associated enterprise is just marketed by the assessee in India. Further, the Transfer Pricing Officer has stated that the assessee has earned very less income as against the expenditure in the mobile payment platform segment. It was submitted that this contention of the Transfer Pricing Officer is incorrect. The assessee submitted that associated enterprise renders mobile payment platform services in the U.S.A. and Kenya whereas the .....

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377; 2,00,000 as integration fees from Yes Bank. A copy of the Yes Bank agreement and commercials was also filed before the Dispute Resolution Panel. 33. As part of above agreement, the assessee hired new employees in departments like treasury, operation., IT operation, BD, marketing, etc., to manage the above non-associated enterprise business. The associated enterprise also seconded two employees to India to manage legal and marketing activity for India operations. A copy of secondment agreeme .....

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er, 2010, the assessee signed another deal with Union Bank of India (UBI), one of the top retail banks of India. However, post launch of this product in the market, the assessee realised that it needs more funds to execute its business activity in India. The assessee being a start-up company had various limitations. Therefore, the assessee changed its strategy and sold this mobile payment platform business along with employees supporting this business to Nokia Mobile Payment Services India Pvt. .....

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ar 2010-11 was as follows : Nature of income Amount (Rs.) Assignment of UBI contract 11,39,25,000 Assignment of other contracts 45,57,000 Transfer of employees 68,36,213 Managed services revenue 1,85,02,569 Professional services revenue 20,65,688 Total 14,58,86,470 36. Further, during the financial year 2011-12, the assessee received ₹ 8,71,561 as income from mobile payment services and ₹ 16,92,09,899 as managed service revenue and professional service revenue from the Nokia deal. A .....

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ently for the third parties. These activities have generated revenues in the subsequent years. Therefore, the Transfer Pricing Officer's contention that the assessee is having huge costs against the revenue earned in mobile payment platform segment because it is bearing the marketing burden of the associated enterprise is incorrect. The learned Transfer Pricing Officer has not appreciated the business and commercial realities and has unilaterally rejected the segmental profit and loss accoun .....

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eful consideration to the rival submissions. We find that the detailed submissions as made by the assessee before the Dispute Resolution Panel and before us, were not made before the Transfer Pricing Officer. It was the stand of the assessee that the Transfer Pricing Officer did not confront the assessee with the various queries that were raised in his order and, therefore, the answers to those queries were provided before the Dispute Resolution Panel. The Dispute Resolution Panel has not consid .....

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