TMI Blog2020 (2) TMI 1356X X X X Extracts X X X X X X X X Extracts X X X X ..... dia. In such circumstances, selection of comparables engaged in software distributor has been accepted by the ITAT. Accordingly, we accept the submission of learned counsel and direct the TPO to examine his submission that if the comparables finally accepted by the ITAT in the case of Turner International India P. Ltd. are taken into account and the comparables of the assessee are selected with reference to it the margin should be accepted if they are plus and minus 5%. Needless to add assessee should be provided adequate opportunity. - I.T.A. No. 2113/Mum/2014, I.T.A. No. 1829/Mum/2015 - - - Dated:- 5-2-2020 - Shri Shamim Yahya (AM) Shri Pawan Singh (JM) Assessee by: Shri Porus Kaka Shri Divesh Chawla Department by: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Star India Pvt. Ltd., till the end of the earlier financial year. 5. Details of International Transactions:- The Assessee has reported the following international transactions in its Form 3CEB:- Sr.No. Nature of transaction AE Value of transaction Method used 1. Obtaining license for distribution of channels Star Television Entertainment Limited CSTEL') 2,297,915,891 TNMM Star Asian Movies Ltd ('SAML') 470,593,717 St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded for both transactions are similar, the fact that an insignificant portion of Star Den's total revenue is generated from provision of services for distribution of channels in Sri Lanka and Bangladesh and given the similarity in the efforts involved and the commonality of the resources, it is practically not possible to identify the profit generated from the activities separately i.e. it is not possible to prepare segmented accounts for the two international transactions. 7. The assessee, accordingly, due to the similarity in the functions performed for international transactions, insignificant value and the inability to bifurcate the profit and loss account has aggregated and analyzed both the transactions under the main business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of 0.74%. The weighted average of the comparable PLI was given. 11. The TPO was not satisfied with the comparable selected. He observed that the comparables selected by the assessee i.e. software distributors do not undertake functions which are similar to that of the assessee. The TPO rejected all the submissions and objections of the assessee and finally came to the following set of comparables :- Sr.No. Name of company Margin (in %) F.Y. 2008-09 1 Fame Motion Pictures Ltd./Shringar Films Ltd. 6.28 2 National films Development Colporation Ltd. 20.17 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by learned DRP. 14. Against this order the assessee has filed the appeal before the ITAT. 15. We have heard both the counsel and perused the records. Learned Senior Counsel Shri Porus Kaka submitted that the issue is squarely covered in favour of the assessee by the decision of Delhi ITAT in the case of Turner International India (P) Ltd. Vs. ACIT (95 taxmann.com 285) and decision of ITAT Mumbai in the case of ACIT Vs. NGC Network (India) Pvt. Ltd. (10 taxmann.com 140). Referring to the said decision of Turner International India P. Ltd. (supra), learned Counsel of the assessee submitted that in the said decision it was noted that the assessee was mainly engaged in the business of marketing and distribution of satellite channels of Ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional India P. Ltd. are adopted the assessee margin would compare favorably within the safe harbour rules of plus and minus 5% and no adjustment would be called for. 17. Per contra, learned Departmental Representative relied upon the order of DRP. 18. We have carefully considered the submissions and perused the record. We find that the submissions of learned counsel that identical issue was decided in the case of Turner International India P. Ltd. (supra) by the ITAT Delhi Bench has sufficient cogency. The business activity of the assessee in that case was marketing and distribution of satellite TV channels. Akin to that the assessee in the present case is also involved in distribution of various Star as well as third party channels i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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