TMI Blog2022 (8) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... old that this company cannot be included in the list of comparables because of breaching the filter. We, therefore, direct to exclude it. CES limited - It is rendering both BPO and KPO services, discussing this issue at page 19 of the order. In view of the fact that the assessee is engaged in rendering only BPO services, CES Limited providing both BPO and KPO services, cannot therefore be held as comparable. We, therefore, direct to delete this company from the list of comparables. Domex e-data Pvt. Ltd - From the portion of the Directors' report, it is graphically clear that, apart from rendering IT enabled services, this company is also engaged in providing software development services. Though its revenue has been shown in a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2016-17. 2. The appeal is time barred by 85 days. The ld. AR stated that the delay in filing the appeal was caused due to Covid pandemic situation prevailing in the country at the material time. We are satisfied with the reason so stated. The Hon'ble Supreme Court in Cognizance for Extension of Limitation, In re 438 ITR 296 (SC) read with judgment in Cognizance for Extension of Limitation, In re 432 ITR 206 (SC) dated 08-03-2021 and 421 ITR 314 has taken a suo motu cognizance of the situation arising out of the challenges faced by the country on account of COVID-19 Virus and resultant difficulties that could be faced by the litigants across the country and accordingly extended the time limit for filing of the appeals. We, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred to the assessee company as engaged in providing I.T. enabled services in the nature of translation, website localization, software localization, testing, training and e-learning. The Transfer pricing study report of the assessee throws more light on the nature of services. Page 6 of the Transfer pricing study report gives further elaboration. The 'Translation' has been explained as converting Instruction manuals, Business agreements, Business products and Company brochures etc., into various languages as required by the clients. Then, the assessee also carried out conversion of various websites of the clients into the localized languages, may be Hindi, Marathi, or Tamil etc. Similar is done for the softwares developed by the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company is failing the RPT filter applied by the TPO himself, which is otherwise also well recognized and approved by various Hon'ble High Courts, we hold that this company cannot be included in the list of comparables because of breaching the filter. We, therefore, direct to exclude it. (2) CES limited: 8.1. This comparable was also chosen by the TPO. The assessee's objection that this company was engaged in rendering KPO services as well was not approved by the TPO, who went with its inclusion. 8.2. The Annual report of this company shows that it is engaged in both the IT and IT enabled services. As the company has segmental accounts, the TPO has considered only IT enabled services segment for the purposes of comparabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part from rendering IT enabled services, this company is also engaged in providing software development services. Though its revenue has been shown in a combined manner under one head of IT enabled services, but the above description of the activities makes it clear that it is also engaged in software development. As the assessee is engaged only in IT enabled services and not in software development, we order to exclude it from the list of comparables. 10. The next issue challenged by the assessee is against the treatment of Foreign Exchange Fluctuation (forex) loss as non-operating. The TPO treated the assessee's forex loss as non-operating. No relief was allowed by the DRP. 11. It is undisputed even from the DRP directions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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