In a transfer pricing dispute involving software development...

In a transfer pricing dispute involving software development services, the ITAT held that the persistent loss filter applied only where a company incurred losses in all three relevant years, so DCIS Dot Com Solutions India Pvt. Ltd. and Rheal Software Pvt. Ltd. were to be included as comparables. It further held that Mind Tree Limited and Nihilent Limited were functionally dissimilar, lacked usable segmental information for software development services, and were to be excluded as comparables. Foreign exchange gain arising from realization of service receivables was held to be operating income for PLI computation. The claim for risk adjustment was restored for fresh consideration, and credit for self-assessment tax and TCS was directed to be granted after verification.

---