TMI Blog2017 (9) TMI 1795X X X X Extracts X X X X X X X X Extracts X X X X ..... order in Intrepid Travels Pvt. Ltd. Vs ADIT[2015 (4) TMI 752 - ITAT DELHI]. Accordingly, we direct the Assessing Officer/TPO to exclude this company from the final list of comparables. WAPCOS Limited (Segmental) company provides consultancy services relating to water, power and infrastructure sector. The services offered include market intelligence studies, planning/project formulation and geotechnical investigation, engineering, quality assurance and management and human resource development. This company also executes turn key projects on a regular basis. This company was excluded as a comparable by ITAT Delhi Bench in Nortel Networks India Ltd. vs ADIT [2014 (3) TMI 363 - ITAT DELHI] on the ground of being functionally dissimilar. Marketing support services cannot be compared with turnkey, engineering services and therefore, this company cannot be held to be functionally comparable to the assessee company. We direct the AO/TPO to exclude this company also from the final list of comparables. - Decided in favour of assessee. - ITA No. 6407/Del/2012 - - - Dated:- 22-9-2017 - SHRI B.P.JAIN, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER For the Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Average OP/TC of comparables (using multiple year data) 13-32% 11.06% OP/TC (using current year data) data 15.06% 8.00% Conclusion At arm s length in accordance with the Indian Transfer Pricing ( TP ) Regulations. 2.2 During the course of the transfer pricing assessment proceedings, the TPO directed the Assessee to submit updated current year i.e. Financial Year ( FY ) 2007-08 data for the comparable companies considered in its TP Documentation. Thereafter, the TPO made an adjustment to the Assessee s international transactions of Provision of Contract IT services and Provision of Marketing Support Services vide order dated October 25, 2011. The TPO, however, accepted the arm s length nature of the other international transaction entered into by the Assessee with its AEs. 2.3 The final set of comparable companies identified by the TPO in his order to benchmark the Assessee s international transactions of provision of Marketing Support Services are as follows: Provision of Marketing Support Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffluent Mgmt. Co. Limited in the final comparable set for determining the revised ALP for the Assessee s international transaction in the nature of provision of Marketing Support Services. 2.7Accordingly, after incorporating the above changes in accordance with the directions issued by the Hon ble DRP, the final comparable set is as follows: Sr. No. Name of the Company Revised Comparables Set - As per directions of the Hon. DRP 1 Best Mulyankan Consultants Limited 3-34% 2 Choksi Laboratories Limited 28.90% 3 ICRA Management Consulting Services Limited 2.60% 4 IDC (India) Limited 16.67% 5 Indus Technical Financial Consultants Limited 18.37% 6 Technicom-Chemie (India) Limited 13-57% 7 WAPCOS Limited (Seg.) 61.14% Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to environment, rural and urban development, water resources, personnel development, industrial relations etc. and was not providing marketing support services and hence the same needed to be excluded. 4. The Ld. Departmental Representative, in response, submitted that even the comparables accepted by the assessee were not strictly providing Marketing Support Services and that these comparables were excluded looking into the main function of the assessee which was of providing IT enabled services. Ld. DR placed reliance on the findings of the TPO as well as of the Hon ble DRP and submitted that in absence of proper comparables, a broader view has to be taken. It was submitted that these three comparables should not directed to be excluded. 5. We have heard the rival submissions and perused the material available on record. We take up the comparables disputed by the assessee one by one. i)Choksi Laboratories Limited : It is the assessee s contention that this company was functionally dissimilar to the assessee company as this company provided end to end solutions whereas the assessee company only provided marketing support services along with IT enabled services. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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