TMI Blog2021 (2) TMI 1208X X X X Extracts X X X X X X X X Extracts X X X X ..... y of Infobeans Technologies Ltd. with a routine software development service provider, we hold that this company cannot be a comparable to the assessee. Accordingly, we direct the Assessing Officer to remove this company from the list of comparables and determine the arm's length price. - ITA No. 6570/Mum/2017 - - - Dated:- 24-2-2021 - SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER For the Assessee : Shri Jitendra Singh For the Revenue : Shri Chandra Vijay ORDER PER SAKTIJIT DEY. J.M. The captioned appeal has been filed by the assessee challenging the final assessment order dated 28th September 2017, passed under section 143(3) r/w section 144C(13) of the Income Tax Act, 1961 (f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeded to determine the arm's length price under TNMM. While doing so, he selected seven comparables with arithmetic mean of 23.54%. By applying the said arithmetic mean to the operating cost, he determined the arm's length price of sales to the AE at ₹ 25,58,81,505. Thus, the short fall of ₹ 2,78,93,455, was proposed as upward adjustment to the price charged to the AE. The adjustment proposed by the Transfer Pricing Officer was added back to the income of the assessee in the draft assessment order. The assessee raised objections before learned DRP against the aforesaid adjustment. However, learned DRP did not find merit in assessee s objections. 4. The learned Counsel for the assessee submitted, Infobeans Technologie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f M/s. Emersion Electric Co. India Pvt. Ltd. (supra) which is for the very same assessment year, the Co ordinate Bench following the decision rendered in case of Pubmatic India Pvt. Ltd. (supra) has held that Infobeans Technologies Ltd. cannot be considered as comparable to a routine software development service provider. The same view was again expressed by the Tribunal, Delhi Bench, in M/s. Abhay India Pvt. Ltd. (supra). Keeping in view the consistency in the decisions of the Tribunal with regard to the comparability of Infobeans Technologies Ltd. with a routine software development service provider, we hold that this company cannot be a comparable to the assessee. Accordingly, we direct the Assessing Officer to remove this company from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
