TMI Blog2021 (7) TMI 1301X X X X Extracts X X X X X X X X Extracts X X X X ..... giving effect to the order only in respect of the transactions that assessee had with its associated enterprises. Accordingly this ground raised by assessee stands allowed for statistical purposes. Depreciation disallowed on computer peripherals at 60% - As AR submitted that DRP had directed the Ld.AO to grant depreciation at 60% on computer peripherals which has not been followed while passing the final assessment order. We thus direct the Ld. AO to comply with the directions of DRP in accordance with law. - ITA No.684/BANG/2017 - - - Dated:- 23-7-2021 - SHRI. B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Appellant by : Shri Aliasgar Ram Purawala, C.A Respondent by : Ms. Neera Malhotra, CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible range it held its transaction to be at arms length. 2.5 Dissatisfied with the selection of comparables by assessee, the Ld.TPO carried out fresh search, thereby shortlisted 14 comparables with average margin of 13%. The assessee further filed additional comparables from which the Ld.TPO accepted 2 comparables. The final list of comparables selected by the Ld. TPO consisted of following 10 companies with average margin of 23.63% 2.6 The Ld.TPO granted the working capital adjustment and computed the shortfall as proposed adjustment at ₹ 144,21,30,393/- in the hands of assessee. The Ld.TPO also included certain domestic transaction to be forming part of the international transaction. 2.7 On receipt of the Transfer Pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... now. 4.1 At the outset, Ld.AR submitted that Ground No.1 is general and therefore need not be adjudicated. 4.2 Ld.AR submitted that assessee do not wish to argue Ground No.2- 2.5, in Ground 2.6 assessee do not wish to press Sasken Communications Technologies Ltd., in Ground 2.7, assessee do not wish to press Akshay software Technologies Ltd. Assessee also do not wish to argue Ground No.3 and Ground No.4. Accordingly these grounds are dismissed as not pressed. 5. Before we undertake the comparability analysis it is sine qua non to understand the functions performed, assets owned and risks assumed by assessee under the software development service segment. The Ld. TPO in the Transfer Pricing order has analysed functions performed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . vs DCIT in ITA No. 692/B/2017 by order dated 27/04/2020. It has been submitted that NXP India Pvt.Ltd., was also characterised to be a captive software service provider to its AE. 6.2 The Ld.CIT.DR though objected, could not controvert the observations of this Tribunal in case of NXP India Pvt. Ltd., (supra). 7. We have perused submissions advanced by both sides in light of records placed before us. We note that the functional profile of this assessee and the assessee in the decision cited by the Ld.AR are same. Above comparables have been dealt with by this Tribunal as under: -- Space left intentionally ---- PERSISTENT SYSEMS LIMITED 7.1 Above views has been consistent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly direct the Ld. AO/TPO to restrict the adjustment if any that may be computed are wildly or giving effect to the order only in respect of the transactions that assessee had with its associated enterprises. Accordingly this ground raised by assessee stands allowed for statistical purposes. 11. Ground No. 6 is in respect of the depreciation disallowed on computer peripherals at 60%. 12. The Ld.AR submitted that DRP had directed the Ld.AO to grant depreciation at 60% on computer peripherals which has not been followed while passing the final assessment order. We thus direct the Ld. AO to comply with the directions of DRP in accordance with law. Accordingly this ground raised by assessee stands allowed for statistical purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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