TMI Blog2023 (3) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... t in issue before us. This is indeed coupled with the fact that M/s. Integra Software Services Private Limited had undergone a merger scheme with M/s. Integra Infotech Private Limited as per the NCLT order to this effect in the relevant previous year. Faced with the situation, we direct the TPO to exclude all the instant six comparables and compute the assessee s arm s length price [ALP] adjustment accordingly. Include M/s. Cheers Interactive (India) Private Limited, I Services Private Limited and Sundaram Business Services Limited which stand excluded in the learned lower authorities respective orders. The first and foremost comparable herein M/s. Cheers Interactive (India) Private Limited had not derived any revenue in ITES segmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is assessee s appeal for Assessment Year 2018-19 arises against ACIT, Circle-5, Pune s assessment dated 15.07.2022 in Din Order No.ITBA/AST/S/143(3)/2022- 23/1043872173(1) framed in furtherance to the CIT-(DRP-3), Mumbai-1, Mumbai s directions dated 14.06.2022 in Din Order No. ITBA/DRP/F/144C(5)/2022-23/1043428421(1), in proceedings u/s.143(3) r.w.s 144C(5) of the Income Tax Act, 1961 (in short the Act ). 2. Heard both the parties. Case file perused. 3. The assessee pleads the following substantive grounds in the instant appeal : 1. That on the facts and circumstances of the case and in law, the AO has erred in assessing the total income of the Appellant for the relevant AV at INR 26,06,89,393 as against the returned income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilters. 2.4. not appreciating that the Ld. TPO in Appellant's own case for earlier years (for the 5 years period till AY 2017-18) accepted the applicability of Safe Harbour provisions and ignoring the fact that the margin earned by the Appellant during the AY 2018-19 is in line with the Safe Harbour rates and thus, any addition is unwarranted. 3. That on the facts and circumstances of the case and in law, the AO/ DRP have erred in making a disallowance of INR 4,87,716 under section 36(1)(va) of the Act despite the fact that employee contribution towards Provident Fund ( PF ) and Employee State Insurance ( ESI ) were made before the due date of filing the income tax return. 4. That on the facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing that this tribunal s recent coordinate bench s order in Schlumberger India Technology Centre (P.) Ltd. vs. DCIT [2022] 142 taxmann.com 243 (Pune-Tribunal) has already excluded M/s. Manipal Digital Systems Private Ltd., Domes e-Data Private Ltd., and MPS Ltd., i.e. three of the above comparable entities as not functioning in ITES segment . The other entities included by the learned lower authorities i.e., Vitae International Accounting Services Private Limited, Access Healthcare Services Private Limited and Integra Software Services Private Limited are also found to be not engaged in the assessee s segment since they have been carrying-out their business activities and deriving revenues from accounting, healthcare services and e-pub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we remit the instant issue back to the learned TPO for his fresh adjudication on merits without commenting anything further at this stage. Ordered accordingly. 7.3. So far as the assessee s third comparable Sundaram Business Services Limited is concerned, learned counsel could hardly dispute that it s revenue from operation at page-201 in note-16 nowhere specified any ITES activity. We thus decline the assessee s arguments seeking to include this comparable in ALP computation. Ordered accordingly. This ground no.2.4 is partly accepted for statistical purposes in foregoing terms. 8. This leaves us with the assessee s second additional ground pleaded during the course of hearing that both the learned lower authorities ought not to hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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