Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Latest Cases

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2019 (5) TMI 1069

..... rable objected to by the Assessee on account of it being functionally different from the Assessee - HELD THAT:- Since the entire TP Adjustment has hinged only on one comparable, viz., HCCA the objection to the inclusion of which by the Assessee required a detailed consideration, the Court is of the view that the impugned order dated 11th July 2018 of the ITAT cannot be sustained in law. The question of law is accordingly answered in the negative i.e. in favour of the Assessee and against the Revenue. The Court notes that in the impugned order, the ITAT has remanded to the TPO the consideration of one of the comparables proposed by the Assessee viz., Ma Foi Management Consultants Ltd. and one other as suggested by the DRP i.e. Nirbhay Manage .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... present cases concern the issue of transfer pricing for its staffing segment. 3. For Assessment Year (AY) 2010-2011 the Assessee filed a return declaring an income of ₹ 32,79,820/- and paid tax under section 115 JB on a book profit of ₹ 1,76,61,244/-. 4. The Assessing Officer ( AO ) after noting that there were international transactions entered into by the Assessee with its Associated Enterprises, referred the case to the Transfer Pricing Officer ( TPO ) for determining the arm's length price ( ALP ) of the said international transactions. 5. Admittedly before the TPO as part of the Transfer Pricing Study, the Assessee had put forth two comparables as regards the staffing segment. Both these comparables were rejected by th .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... missed by the ITAT by its order dated 25th March 2019. It is against the said order that W.P. (C) 5198/2019 has been filed by the Assessee. 9. Ms. Vibhooti Malhotra, learned counsel for the Revenue, submitted that the mere exclusion or inclusion of a comparable for the purposes of Transfer Pricing Adjustment does not give rise to any substantial question of law and this has been the settled legal position as explained in several decisions of this Court as well as other High Courts. 10. While it is correct that the mere exclusion or inclusion of a comparable may not per se give rise to any substantial question of law, in the present case the Court finds that the only comparable on the basis of which the Transfer Pricing Adjustment has been r .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... objections to inclusion of HCCA which according to the Assessee was only providing pay roll processing services. The difference in functionality of the Assessee and HCCA was not discussed by the ITAT. 14. Since the entire TP Adjustment has hinged only on one comparable, viz., HCCA the objection to the inclusion of which by the Assessee required a detailed consideration, the Court is of the view that the impugned order dated 11th July 2018 of the ITAT cannot be sustained in law. The question of law is accordingly answered in the negative i.e. in favour of the Assessee and against the Revenue. 15. The Court notes that in the impugned order, the ITAT has remanded to the TPO the consideration of one of the comparables proposed by the Assessee .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||