TMI Blog2022 (12) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... regarding exclusion of these twin entities from the array of comparables. As assessee s computation that it s PLI of 11.86% (supra) falls within 5% tolerance mark of the arithmetic mean coming to 13.57% u/s 92C(2) of the Act 2nd proviso in light of our adjudication on the foregoing issue. This clinching plea has gone unrebutted from the Revenue side. We thus conclude that Revenue s twin substantive grounds involving M/s. Quintegra Solutions Pvt. Ltd. and M/s. CG-VAK Software Exports Ltd. as well taxpayer s cross objection seeking inclusion of M/s. Thirdware Solutions Ltd. (supra) stand rendered academic. - ITA No.553/PUN/2020 With Cross Objection CO No. 18/Pun/2022 - - - Dated:- 29-8-2022 - SHRI S.S. GODARA, JUDICIAL MEMBER AND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the alleged improper acceptance and rejection of the foregoing five comparable entities; as the case may be, in this taxpayer s segment of provision for software development services. 4. It next emerges that the CIT (A) s detailed discussion in paras 4.2 4.3 and 4.5 to 4.5.2 of his order excludes M/s. Bodhtree Consulting Ltd. and M/s. Kals Information Systems Ltd. based on the tribunal s coordinate bench s direction in AY 2008-09 dated 06.11.2013 involving assessee s appeal ITA No. 6733/Mum/2012 rejecting the Revenue s contentions regarding the first and foremost entity herein M/s. Bodhtree Consulting Ltd. as follows:- 21. On this comparable, case of the assessee is that the company is not a good comparable in view of the softw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred the objections raised by the assessee before the TPO at page 286 of the paper book and submitted that the assessee brought this fact that this company is engaged in providing open and end to end web solutions, software consultancy, design and development of software, using the latest technologies. Further, the company has identified only one segment i.e software development. Therefore, the Id AR has submitted that this company is functionally not comparable with the assessee and consequently should be excluded from the comparables. 29.2 On the other hand, the Id DR has filed the information collected u/s 133(6) of the I T Act and submitted that as per this information, this company has revenue from ITES activity to the extent o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same to know the revenue s for software services and the software products. Ld DR brought our attention to the details under the head inventories and mentioned that Work in Progress is NIL for the period ending March, 2008; but the fact is that there are no segment details relating to software products out of the segmental information under the head application in software . Considering all the information available in public domain, we are of the opinion that this case cannot be considered as a good comparable. As such, the fact that the company is producing the ERP software products called Shine, the internationally proven ERP software and other software products called Docuflo (Document Management Software) etc are brought revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of these twin entities from the array of comparables. 8. Mr. Pathak at this stage invited our attention to the assessee s computation that it s PLI of 11.86% (supra) falls within 5% tolerance mark of the arithmetic mean coming to 13.57% under Section 92C(2) of the Act 2nd proviso in light of our adjudication on the foregoing issue. This clinching plea has gone unrebutted from the Revenue side. We thus conclude that Revenue s twin substantive grounds involving M/s. Quintegra Solutions Pvt. Ltd. and M/s. CG-VAK Software Exports Ltd. as well taxpayer s cross objection seeking inclusion of M/s. Thirdware Solutions Ltd. (supra) stand rendered academic. Ordered accordingly. 9. This Revenue s appeal ITA No. 553/Pun/2020 is dismissed and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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