2014 (1) TMI 983

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....tely falls under EDA (Electronic Design Automation) industry. The assessee generates whole of its business from its parent company, namely, Atrenta, USA. The assessee develops software in accordance with the requirements of its parent company and gets compensation on cost plus 10% mark-up. During the previous year relevant to the assessment year under consideration, the assessee entered into certain international transactions with its foreign Associated Enterprise (AE). Such transactions have been enumerated on page 2 of the order passed by the Transfer Pricing Officer (TPO). The assessee adopted Transactional Net Margin Method (TNMM) as most appropriate method. Three cases were chosen by the assessee as comparable. The TPO rejected such co....

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....re as against Rs.8.02 crore by the assessee. (c) Capital of Infosys Ltd. is Rs.17,809/- crore as against the assessee's at Rs.18.80 crore. (d) Infosys Ltd. is a full fledged risk taking company as against the assessee being a captive unit assuming no substantial risk. (e) Infosys is an ITES global technology service provider which designs and delivers IT enabled business solutions as against the assessee developing software in the field of EDA only. (f) Infosys Ltd. has a much wider diversified customer base as against the assessee having only one parent company as its customer. (g) The number of employees on the payroll of Infosys Ltd. stood at 1,04, 850 as against only 202 employed by the assessee. 4.2. In order to stren....

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....ng precedent to be respected and followed by the authorities. Though we hold in principle that the judgment of the Hon'ble Delhi High Court in Agnity Ltd. (supra) appears to be prima facie applicable, we equally appreciate the contention of the ld. DR that the relevant factors need to be evaluated at the TPO's end. We, therefore, set aside the impugned order on this issue and remit the matter to the file of the TPO for deciding this issue afresh as per the mandate of the aforesaid view of the Hon'ble High Court. Needless to say, the assessee will be given full opportunity to put forth its case and lead any fresh evidence or rely on other decisions in support of its claim. 5. The assessee has objected to the inclusion of the case of Bodht....