TMI Blog2019 (7) TMI 1965X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidering the order of the Tribunal in the assessee s own case for the assessment year 2009-10, we hereby hold that the ld. CIT(A) has rightly excluded the company Accentia Technologies Ltd. from the final list of comparables. Consider foreign exchange gain/loss as non-operative while calculating the operating profit margin of the Assessee and the comparable companies - HELD THAT:- The foreign exchange emanating from international transaction is a part of business receipt and hence any loss or gain on foreign exchange fluctuation invariably is a part of operational income. Further, owing to the judgments of FISERV India Pvt. Ltd. [ 2016 (1) TMI 1276 - DELHI HIGH COURT] and in the case of PCIT Vs BC Management Services Pvt. Ltd. [ 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urced medical transcription services. It has developed a business model that delivers a significant quality and cost advantage though the combination of a professionally managed workforce located in India, deployment of a proprietary technology platform and workflow process, and the implementation of targeted, high volume marketing strategy. The company is engaged in providing coordination and outsources the transcription work to the HMTs. The company plays the role of coordinator, facilitator and does the quality review of transcription work outsourced to HMTs and independent supplier before finally delivering the files to the parent company. 3. For medical transcription, quality assurance and related services the TNMM method was applie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the other services provided by the company is also related with the healthcare segment which has been termed as Healthcare Receivables Cycle Management (HRCM) wherein medical transcription services forms the foremost segment and is an integral part of the entire gamut of services and hence should not be excluded. 6. Against these arguments, the ld. AR argued that the segmental data was not available which is a primary requirement for comparison. He argued that owing to the major which is an extraordinary event which in turn leads to super normal profits to the tune of 52.51%, the same cannot be included in the final set off comparables. He also argued that the TPO has not considered the cases considered the company that were affecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee company is 28 crores only. Regarding the business model, while the assessee company is in HMT model, the comparable in question depends mostly on outsourcing of business processes. The audit report clearly mentions that no segmental data has been prepared and company has only one segment of activity which is HRCM segment. Hence, keeping in view the factors viz. dissimilar business model, non-comparable turnover, extraordinary events of merger and acquisitions leading to higher profits and non-availability of the segmental data and considering the order of the Tribunal in the assessee s own case for the assessment year 2009-10, we hereby hold that the ld. CIT(A) has rightly excluded the company Accentia Technologies Ltd. from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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