TMI Blog2017 (12) TMI 1680X X X X Extracts X X X X X X X X Extracts X X X X ..... #8223;s expertise which was software development services. This Court is of the opinion that having regard to the findings in respect of the two comparables, no question of law arises. Revenue has to ensure the functional similarities and exclude comparison of entities where there are significant dissimilarities as in the case of Accentia Technologies Ltd. As far as the TCS E-Serve Ltd. and TCS E-Serve International Ltd. are concerned, the ITAT was of the opinion that these entities had to be excluded having regard to the established „brand value‟ which drew the profitability upward and secondly, that the merger of the one entity had resulted in distortion of the profit figures. This Court had recently in Pr. Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer, as dealt with by the Income Tax Appellate Tribunal (ITAT), are the subjects of the Revenue‟s appeal under Section 260A of the 1961 Act. The questions of law urged is with respect to the exclusion of six comparables in the transfer pricing study and arm‟s length price assessment in the impugned order and secondly, whether the interest income declared by the assessee could be exempted in view of Section 10A of the 1961 Act. The facts briefly are that the assessee is engaged primarily in software development, specifically in healthcare claims adjudication and bio-pharmaceutical services. Its transfer pricing reports were subjected to study analysis by the Transfer Pricing Officer (TPO), who excluded several co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion that this reasoning is sound. For the purposes of transfer pricing exercise, the Revenue has to ensure the functional similarities and exclude comparison of entities where there are significant dissimilarities as in the case of Accentia Technologies Ltd. As far as the TCS E-Serve Ltd. and TCS E-Serve International Ltd. are concerned, the ITAT was of the opinion that these entities had to be excluded having regard to the established brand value‟ which drew the profitability upward and secondly, that the merger of the one entity had resulted in distortion of the profit figures. This Court had recently in Pr. Commissioner of Income Tax Vs. B.C. Management Services Pvt. Ltd. [ITA 1064/2017, decided on 28.11.2017], upheld th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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