9911796707
TMI Blog2021 (12) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) has erred in law and on facts in directing the Transfer Pricing Officer (TPO) to exclude M/s. Karvy Consultants Limited from the final list of comparables on account of TP adjustment in arm's length price as the Ld. CIT(A) has failed to appreciate the fact that in service sector, turnover has no impact on profit margin more so when TNMM has been selected as the most appropriate method." 3. As could be seen from the ground raised, the dispute in the present appeal is confined to comparability of M/s. Karvy Consultants Ltd. 4. Briefly the facts are, the assessee, a resident company, is a wholly owned subsidiary of M/s. American Express International Inc. (AEII), USA. As stated by the Transfer Pricing Officer (TPO), the assessee is e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n assessee's own case in assessment year 2002-03, directed the TPO to exclude some of the comparables, including M/s. Karvy Consultants Ltd. from the list of comparables, since, their annual turnover from the ITeS segment was less than Rs.5 crores. Being aggrieved with the aforesaid decision of learned first appellate authority, the Revenue preferred an appeal before the Tribunal. Of course, the assessee also preferred an appeal before this Tribunal, challenging some other observations of learned Commissioner (Appeals). 6. Be that as it may, while deciding both the appeals, the Tribunal in ITA Nos. 4240/Del/2009 and 4295/Del/2009 dated 18th May, 2012, upheld the decision of learned Commissioner (Appeals) to exclude the comparables having a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) should be upheld. 9. We have considered rival submissions and perused the materials on record. Undisputedly, in the first round of transfer pricing proceeding, the TPO had proposed M/s. Karvy Consultants Ltd. as a comparable. Though, the assessee has objected to its inclusion on the ground that financial data of the company is not available in public domain, however, rejecting assessee's objection, the TPO included the company on the reasoning that it is functionally similar to the assessee. While deciding the comparability of M/s. Karvy Consultants Ltd. along with some other comparables in the appeal preferred by the assessee, learned Commissioner (Appeals) had directed exclusion of all comparables having annual turnover of less than R ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
