2014 (1) TMI 890

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....ssessee filed revised paper-books common for the assessment years 2004-05 to 2006-07, containing papers in two parts. 3. Briefly stated, assessee is wholly owned subsidiary of HSBC Holdings Plc (HSBC group) one of the leading banking and financial services organisation in the world. The assessee provides a range of back office services including contact centre and data entry and data processing and related services, together referred to as BPO services, to its group companies/Associated Enterprises (AE) across the globe. 4. The assessee filed return of income for the assessment year 2004-05 on 01.11.2004 disclosing a taxable income of Rs.1,51,79,825, after claiming deduction under S.10A of the Income-tax Act, in respect of the profits fro....

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...., while the contentions of the assessee against the inclusion of this comparable, are not accepted, and this company was included as one of the comparables on the reason that the assessee's turnover is equally high as that of Wipro BPO Solutions. However, on the reason that the assessee's contention that profit margin worked out by the TPO is incorrect requires to be examined by the TPO/Assessing Officer, the matter for that year was restored to the file of the Assessing Officer to find out why the bank charges are excluded, whether they are operating profits. Consistent view taken by us in the appeal for assessment year 2005-06 as noted above, for the assessment year 2004-05 as well, for this limited examination of quantification of PLI of....

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....der the related party transactions filter vide para 28 of the order. It was submitted by the assessee that in applying the RPT filter, only transactions that have impact on the operating results/profitability of the company should be considered. The learned TPO, however, it is submitted by the learned counsel for the assessee, has included capital account transactions, viz. loans received, corporate guarantee taken, loans given in computing the percentage of related party transactions. The assessee submitted the following table with reference to the related party transactions on page 3 of the written submissions furnished before us- Related party transaction FY 2003-04 (Rs.) Reimbursement of cost, financing charges & mark up 28,144,512 ....