TMI Blog2023 (11) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... analytics and processing solutions to some of the largest brands in the world and is recognized as experts in chosen markets financial services, retail and manufacturing and is a KPO. In view of different functioned profile, we thus see no justification in the action of the Revenue to introduce such company in the final set of comparables as rightly held by the CIT(A). We thus decline to interfere. TCS E Serve Ltd is mainly involved in transaction processing and technology services. It carries on business of providing technology services such as software testing, verification and validation. TCS has also develop a software such as Transport Management Software and therefore, functionally this company is dissimilar to assessee company. Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) Flight Screening (b) Fare Audit (c) Fare Encoding (d) Teletype Reject Processing (e) Revenue Accounting (f) Call-centre operations (g) Loyalty Program Management. The assessee filed return of income declaring total income at Rs. 6,10,75,580/- for the A.Y. 2011-12 in question. The return filed by the assessee was subjected to scrutiny assessment. In the course of scrutiny assessment, a reference was made to Transfer Pricing Officer (TPO) to determine the Arm s Length Price (ALP) under section 92CA(2) of the Act. The TPO vide order dated 22.01.2015 passed an order proposing adjustment of Rs. 3,03,12,644/- under Chapter-X of the Act. The AO consequently passed final assessment order dated 01.05.2015 giving effect to the directions issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he rival submissions and also perused the relevant finding given in the impugned order. It is an undisputed fact that during the financial year 2010-11, Accentia acquired strategic Targent Corporation which was a software development company having expertise in development of software relating to EMR-SaaS Due to this acquisition, the revenue of Accentia has been increased significantly....a very vital factor affecting the pricing and consequently the comparability as well as the profit margin. Apart from that, Accentia is also engaged in development and sale of products for the US market and there are no separate segments of the financials providing details of revenue/ profit from software product division and medical transcript division. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de processing support, reference data maintenance, contract risk review, conciliation and controls, margin and exposure management, metrix and reporting, expense management accounting and finance consulting services whereas under sales marketing services unit, this company is rendering services like online operations and web analytics, CRM and business intelligence, data management and reporting, competitor benchmarking and pricing, quality and compliance and business process consulting. In support of this contention Ld. AR relied on the decision of Hon'ble ITAT Delhi for AY 2011-12 in the case of Actis Global Services (F) Ltd v. ITO [2016] 76 taxmann.com 41 in which Hon'ble ITAT Delhi has held that eClerx Services Private Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported in 2009-TIOL- 104-ITAT-PUNE. However, it has been submitted by the appellant that the FAR profile of M/s R. Systems is akin to that of the appellant. Appellant relied upon findings of ITAT Delhi in earlier AY that the FAR of M/s RSystem International is similar to that of appellant and since quarterly financial statements are available in the public domain, it may be included in the final list of comparable companies. Accordingly, AO/Ld. TPO is directed to consider M/s R. Systems in the final list of comparable companies by considering its quarterly results and include the same in the final list of comparable companies. Accordingly, these grounds of appeal are decided in favour of appellant. 5. Aggrieved, by the relief granted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces Limited . The Co-ordinate Bench in A.Y. 2010-11 in assessee s own case observed that activities of Eclerx is that of a KPO providing specialized services whereas the activities of the assessee are in the nature of routine BPO services. A reference was made to the judgment in Rampgreen (supra) to hold that the business model of the assessee is quite different from Eclerx which provides data analytics and processing solutions to some of the largest brands in the world and is recognized as experts in chosen markets financial services, retail and manufacturing and is a KPO. In view of different functioned profile, we thus see no justification in the action of the Revenue to introduce such company in the final set of comparables as right ..... X X X X Extracts X X X X X X X X Extracts X X X X
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