TMI Blog2018 (8) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... e safely concluded that the business profile of the Infinite Data Systems Private Limited does not match with that of the assessee. Therefore, the DRP has rightly excluded this company from the final set of comparables. No interference is called for. Decided against the revenue. - ITA No. 121/DEL/2015 - - - Dated:- 20-8-2018 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI SUCHITRA KAMBLE, JUDICIAL MEMBER For The Assessee : Shri Nageshwar Rao, Adv For The Revenue : Shri H.K. Choudhary, CIT- DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the Revenue is preferred against the order of the DRP -II, New Delhi dated 05.11.2014 framed u/s 144C(5) of the Income-tax Act, 1961 [hereinafter refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is organised into two segments viz., IT and ITES. The international transactions entered into by the assessee are as under: Nature of international transaction Method selected Amount (In INR) Provision of Software Development Services TNMM 33,51,58,548 Provision of IT Enabled Services TNMM 40,02,92,121 Availing of services TNMM 3,04,87,786 Purchase of fixed assets TNMM 10,95,335 Payment of cost recharges CUP 63,26,7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputed as under: Operating Cost(A) 32,03,40,125 Arm s Length Margin (%) 31.81% Margin (B) 10,19,00,194 Arm s Length Price(A+B)=C 42,22,40,319 Price Charged by the assessee(D) 40,02,92,121 Proposed Adjustment 2,19,48,198 9. The TPO further examined the provision of software development services and after considering the comparables used by the assessee vis a vis the comparables used by the TPO himself, the following set of comparable were used by the TPO : S. No. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sasken Communication Technology Ltd. 17.54 18.87 15 Tata Elxsi Ltd. 19.82 17.98 16 Thinksoft Global Services Ltd. 17.35 14.55 17 Thirdware Solution Ltd 41.63 38.98 18 Thirdware Solution Ltd 41.63 70.60 19 Wipro Technology Services Ltd. 70.60 28.06 10. Accordingly, the arm s length price of the international transaction related to provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 Accentia Technologies Limited 40.20 2 Cosmic Global Limited 20.29 3 e4e Healthcare 31.55 4 Fortune Infotech Limited 21.38 5 l-gate Global Limited 24.09 6 Infosys BPO Limited 30.17 7 Jindal Intellicom Limited 14.95 8 Omega Healthcare 13.11 9 T C S E-Serve International Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and computer covering every aspect of the product life- cycle. This company is also into Board designs. From a careful perusal of the profit of this company, we find that this company is equipped to carry out high-end technology driven services and product development which is not the Profile of the assessee. This company has been rightly excluded from the final set of comparables by the DRP. Hence no interference is called for. 17. Coming to Infinite Data Systems Private Limited, this company is wholly owned subsidiary of Infinite Computer Solutions [India] Limited and provides solutions that encompass technical consulting, design and development of software, maintenance systems integration, implementation, testing and infrastructure m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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