9911796707
TMI Blog2024 (12) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... t of assessment year (AY) 2011-12. 2. The respondent (hereafter the Assessee) had preferred the aforementioned appeal against the final assessment order dated 29.01.2016 passed by the Assessing Officer (hereafter AO) under Section 143(3) read with Section 144C of the Income Tax Act, 1961 (hereafter the Act). The Assessee has preferred the said appeal assailing the transfer pricing adjustment as directed by the Transfer Pricing Officer (hereafter TPO) on the basis of which the Assessee's returned income was enhanced by Rs. 7,44,04,229/-. The Assessee is engaged in providing engineering and design services and is a subsidiary of a US Company named Fluor Corporation and Daniel International. 3. It is a captive service provider and provides s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs Ltd. 30.92 6 Project and Development India Ltd. 39.32- 7 T C E Consulting Engineers Ltd. 29.29 AVERAGE 22.46" 7. Based on the benchmark analysis, the TPO directed enhancement of Rs. 10,05,97,632/-, on the Assessee's declared income. The Assessee filed its objections before the Dispute Resolution Panel (DRP). The objections raised by the Assessee, which are the subject matter in the present appeal, relate to the inclusion of the following four companies as comparables: Sl. No. Company Name 1 Kitco Ltd. 2 Mahindra Consulting Engineers Ltd. 3 Project and Development India Ltd. 4 TCE Consulting Engineers Ltd. 8. According to the Assessee, the FAR (functionality, asset and risk) analysis of the said entities indic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., Cochin Special Economic Zone, etc and is involved in implementing a multimodal Mobility Hub at Cochin all of which are first of its kind in the country in their own respect. KITCO successfully is stated to have completed Phase-l of CIAL Golf Course & Country Club and Ghallah Wentworth Golf Course at Muscat, Sultanate of Oman, thereby establishing itself in an area, which was considered to be the forte of European Consultants. The prestigious overseas assignments completed by KITCO include technical evaluation of electrical power distribution network at King Abdul Aziz International Airport, Jeddah. It is also observed that this company is working in divisions like infrastructure, tourism, aviation, IT services, HRD, financial services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal accepted that the said company was providing high end technical services, which were also not comparable with the functions performed by the Assessee. The relevant extract of the learned ITAT's decision is set out below: "(III) TCE Consulting Engineers Ltd. Ld. TPO included this comparable into the final list, as it provides engineering and designs services to its customers. On the contrary Ld. Counsel submitted before us that it is not a fit comparable as it is functionally dissimilar. On the contrary Ld. CIT DR placed reliance upon the observations of Ld. TPO/DRP. We have perused submissions advanced by both sides in the light of records placed before us. It is submitted that this company is engaged in providing high-end t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the contrary Ld. CIT DR placed reliance upon the observations of Ld. TPO/DRP. We have perused submissions advanced by both sides in the light of records placed before us. Functional profile of this company, as submitted by assessee, and as per the annual report placed at page 396-479 of paper book is as under: Under engineering and consultancy division this company has played a vital role in development of fertiliser industries in India. It is still maintaining strength in the sector and is ready to take up new challenges in executing the Brownfield, Greenfield, revamp and expansion projects of many fertiliser units in country. Ld.Counsel submitted that the services rendered by this company are directly to its clients and not on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o new areas of operation. It is further submitted that it is engaged in providing infrastructure engineering and consulting services. Therefore it is apparent that it is functionally different. We therefore direct to exclude this company, in view of highly technical capabilities of executing infrastructure development projects vis-a-vis that of assessee who is rendering engineering and related services as a sub-contract limited to specific functions as per the requirement of its affiliate." 17. We find no infirmity with the aforesaid view. The findings of the learned ITAT are in consonance with the ALP provisions under Section 92C of the Act. 18. No substantial question of law arises in the present appeal. This appeal is, accordingly, d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
