TMI Blog2015 (5) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee before us. - ITA. No. 89/Hyd/2014 - - - Dated:- 29-5-2015 - Asha Vijayaraghavan (Judicial Member) And Inturi Rama Rao (Accountant Member) For the Assessee : P. Muralimohan Rao For the Revenue : D. Sudhakar Rao ORDER Asha Vijayaraghavan (Judicial Member) This appeal filed by the assessee is directed against the Order passed under section 144C(5) of the Disputes Resolution Panel, Hyderabad dated 22.11.2013 for the A.Y. 2009-2010. 2. Briefly stated, the assessee company is engaged in the business of software development and export. It filed its return of income electronically on 25.09.2009 declaring loss of ₹ 15,74,210 under normal provisions of I.T. Act and the same was processed under section 143(1). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.No. Company Name OP Margin on Total Cost (%) 1. Akshay Software Technologies Ltd., 12.41% 2. Bodhtree Consulting Ltd., 68.43% 3. Comp-U-Learn Tech India Ltd., 28.00% 4. Igate Global Solutions Ltd., 21.97% 5. Infosys Ltd., 41.34% 6. Kals Information Systems Ltd., (seg.) 23.11% 7. LGS Global Ltd., 20.51% 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I.T. India P. Ltd., The third company which is functionally different company from that of the assessee and product based is Kals Information Systems Ltd., (Segment). The Ld. Counsel for the assessee relied on the decision of Allianz Global Services I.T. India P. Ltd., (supra). In short the Ld. Counsel for the assessee stated that if these companies are taken out of the comparable list due to their dissimilarity with the assessee company, the ALP margin comes to 17.27% which is within range of + or 5 of the ALP declared by the assessee. 3.2. With respect to the issue of reimbursement of expenses, the Ld. Counsel for the assessee filed the paper book consisting of 12 pages containing the following : Sl.No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the conclusion drawn in Allianz Global Services I.T. India P. Ltd., (supra) is to be adopted in the present case. Hence, we are of the opinion that Bodhtree Consulting Ltd., Infosys Ltd., and Kals Information Systems are to be deleted from the list of comparables, in which case, the ALP margin would be at 17.27% is accepted by us. The appeal of the assessee on this issue is allowed. 5. With respect to reimbursement of expenditure in the case of Mylan Laboratories Ltd., in ITA.No.66/Hyd/2013 dated 10.01.2014 the Bench observed as follows : 31. .. In case of reimbursement at cost of the expenditure incurred on behalf of the AEs and has not formed part of the expenditure claimed as operating cost of the assessee then, the reimburs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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