9911796707
TMI Blog2024 (7) TMI 1548X X X X Extracts X X X X X X X X Extracts X X X X ..... of this case, Hon'ble ITAT was justified in laying down stringent standards of comparability and attempting to identify exact replica of the taxpayer for comparability analysis, whereas the Indian law and the International jurisprudence recognize the reality that there cannot be an exact comparable in a given situation without any differences without appreciating that such stringency will defeat the purpose of flexibility provided in comparability analysis for determination of ALP? B. Whether on the facts and circumstances of this case, Hon'ble ITAT was right in rejecting the company M/s Acropetal Technologies Ltd. as comparable company ignoring the fact that the TPO had ruled engineering and design services are under ITES services which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey were mega entities and could not have been included in the list of comparables bearing in mind the judgment rendered by the Court in CIT v. Agnity India Technologies Pvt. Ltd. (2013 SCC OnLine Del 2521). 4. That leaves us to consider the case of Acropetal Technologies Ltd. We find that the Dispute Resolution Panel ['DRP'] has excluded the same from the list since it was also engaged in software development. The Tribunal had upheld the exclusion of that comparable. We however note that it had taken a slightly divergent view insofar as Accentia Technologies Ltd. is concerned and which too was found to be engaged in software development. 5. Insofar as Eclerx Services Ltd. is concerned, the respondents would contend that it was essentiall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtfolio risk management services and various critical data management services and various critical data services. Clearly, the aforesaid services are not comparables with the services rendered by the assessee. Further, the functions undertaken are also not comparable with the assessee. In the case of Calibrated Healthcares System India P. Ltd. Vs. ACIT (supra) about the comparable Wipro Ltd. it has been held that this company is a giant entity in comparison with the assessee company with marked differences as regard risk profile, nature of services, ownership of IP rights, expenditure on R & D etc. and, hence, comparable with the assessee. We have similar observations, when we compare the assessee before us with Wipro Ltd. In the same deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present assessee to arrive at a just and fair conclusion. We, while setting aside the orders of the authorities below, on the issues raised in ground Nos. 7 to 11 remand the matter to the file of the ld. TPO to decide the applicability of the disputed comparables, after affording opportunity of being heard to the assessee while taking into consideration the decisions cited above as well as the objections raised by the assessee. The ground Nos. 7 to 11 are accordingly allowed, for statistical purposes." 7. We consequently admit the instant appeal on the following questions of law:- A. Whether on the facts and circumstances of this case, the Tribunal was correct in rejecting the company M/s Acropetal Technologies Ltd. as comparable compan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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