TMI Blog2018 (7) TMI 1402X X X X Extracts X X X X X X X X Extracts X X X X ..... f the average margin of the comparables, then no adjustment is to be made. The AO is directed accordingly. - ITA No.291/Hyd/2015 And C.O. No24/Hyd/2015 - - - Dated:- 18-7-2018 - Smt. P. Madhavi Devi, Judicial Member And Shri B. Ramakotaiah, Accountant Member For The Revenue : Shri J. Siri Kumar, DR For The Assessee : Shri Abhiroop Bhagrav ORDER Per Smt. P. Madhavi Devi, J.M. These are Revenue s appeal as well as the Cross Objection of the assessee for the A.Y 2010-11, against the final assessment order passed by the Asstt.CIT, Circle 17(1) Hyderabad, dated 21.01.2015 u/s 143(3) r.w.s. 144C of the I.T. Act. 2. Brief facts of the case are that the assessee company, engaged in the business of providing s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer to take export turnover of rupees 63,40,59,883/instead of 65,97,10,413/-taken by the Assessing Officer to calculate benefit under section 10A. 5. Whether on the facts and circumstances of the case, the ORP is right in law in directing the Assessing Officer to take ₹ 21,68,353/- as Communication expenses ignoring the fact that the Assessing Officer had rightly taken the amount of ₹ 39,03,927/- towards communication expenses debited under the head 'Internation Privately Leased Circuit and Internet Charges. I 6. In the facts and circumstances of the case, whether Hon'ble ORP is correct in law to exclude communication charges both from export turnover as well as total turnover though such an adjust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogies Pvt. Ltd in ITA No.1204 of 2011 dated 10th July 2013, has held that Infosys BPO is engaged in high end services and therefore, it is functionally dissimilar and its brand undisputedly is a huge brand and definitely results of that brand go to opening higher profit to the said company. Various Coordinate Benches of the Tribunal have followed this decision to hold that Infosys BPO and similarly, TCS E-Serve International Ltd are not comparable to ITES companies like the assessee. Further, M/s. e-Clerex Services (P) Ltd has also been considered as a KPO company, by following the decision of the Hon'ble Delhi High Court in the case of Rampgreen Solutions (P) Ltd vs. CIT reported in (2015) 234 Taxman 573 (Del.). We find that the DRP ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the circumstances of the case and in law, the Ld. DRP and Ld. AO erred including companies namely TCS e-Serve International Ltd. and Accentia Technologies Ltd. in the comparability analysis which are different from the Cross-objector in functions, asset base and risk profile. 3. On the facts and in the circumstances of the case and in law, the Ld. DRP and Ld. AO erred in not granting adjustment on account of risk differential between the Cross-objector and the comparable companies. 4. On the facts and in the circumstances of the case and in law, the Ld. DRP and Ld. AO erred in excluding the telecommunication expenses, being 'Data Com- Connectivity' expenses amounting to ₹ 39,03,927 while computing deduction u ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
