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TMI Blog2018 (4) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and in the circumstance of the case and in law, the Tribunal is correct in excluding Accentia Technologies Ltd. and Coral Hubs Ltd. as comparable, ignoring the said companies are engaged in the business of providing IT enabled services ? (B) Whether on the facts and in the circumstances of the case and in law, the Tribunal is correct in excluding Cosmic Global ltd. and Crossdomain Solutions Ltd. without taking into account FAR analysis ? (C) Whether on the facts and in the circumstances of the case and in law, the Tribunal is correct in including Pentamedia Graphics Ltd. without taking into account FAR analysis and whether the principle of Res Judicata is applicable to the Income Tax Proceedings ?" The Respondent-Assessee is ren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of M/s. Accentia Technologies Ltd. had been impacted by merger/amalgmation and therefore, cannot be considered to be comparable. (b) The grievance of the Revenue before us is that the merger and/or amalgmation would have no impact on the profitability of M/s. Accentia Technologies Ltd. Therefore, it was urged to be an appropriate comparable as both are rendering ITES services. (c) We find that the impugned order of the Tribunal has after rendering a finding of fact that the activities of the tested party and comparable are functionally different, also records finding of fact that extraordinary events such as merger/amalgmation would have an impact/effect on the profitability of M/s. Accentia Technologies Ltd. Therefore, on both the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded M/s. Coral Hub Ltd. from the list of comparable after rendering a finding of fact that activities undertaken by Coral Hub Ltd. are not comparable to that engaged by the Respondent-Assessee. It was found as a fact by the Tribunal that M/s. Coral Hub Ltd. is engaged in ITES particularly selling and purchasing of products and goods whereas the Respondent-Assessee is engaged in elearning and content development activity. Besides, the Tribunal has recorded finding of fact that business model adopted by M/s . Coral Hub Ltd. was different inasmuch as it outsources its work to subvendors as against the Respondent-Assessee carrying out its activities in-house. (b) The grievance of the Revenue is that both the Coral Hub Ltd. as well as the Res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by M/s. Coral Hub Ltd. Therefore, they would not be comparable only on the ground that both of them broadly fall under the category ITES providers. (d) The finding reached by the Tribunal is one of finding of fact which is not shown to be perverse. Thus, there is no reason to interfere with the finding of fact recorded by the Tribunal. III Conclusion: In the above view, the question as proposed does not give rise to substantial question of law. Thus, not entertained. 4 Re. Question ( B ) : (I) Cosmic Global Ltd . : (a) The impugned order of the Tribunal excluded Cosmic Global Ltd. as comparable after rendering a finding that the business model adopted by Cosmic Global Ltd. was outsourcing business model as against Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s diversified activities being carried by M/s. Crossdomain Solutions Ltd. Thus, it held that comparison on an entity level of M/s. Crossdomain Solutions Ltd. with the Respondent's AE transaction is not correct. (b) The Revenue has not been able to show that the finding of the fact arrived at by the Tribunal is perverse. (c) In the above view, there is no reason to interfere with the above finding of the Tribunal in respect of Crossdomain Solutions Ltd. (III) Conclusion: For the reasons indicated above, this question as proposed being one of fact does not give rise to any substantial question of law.Thus, not entertained. 5. Re. Question No. (C): (a) The impugned order of the Tribunal included Pentamedia Graphics Ltd. as comparable. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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