2015 (1) TMI 147

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....R R.C.SHARMA (A.M.) : This Stay Application arose out of the appeal filed by the assessee before ITAT in ITA No.1315/M/2014 in the matter of order passed u/s.143(3) r.w.s.144C(13) of the Act. 2. It was argued by the learned AR that the Transfer Pricing adjustment has been made by the TPO by selecting the comparables in respect of provisions of IT enabled back office support services. As per ....

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.... As per learned AR if this comparable is excluded the assessee will be within the limit of +5% and no transfer pricing adjustment is required to be made. 4. Learned AR further submitted that if the seven comparables selected by the TPO stated at Sl.No.2,3,4,7,8,11&21 are excluded from comparables because they are not functionally comparable, assessee's mark-up of cost of 17.11% will be higher t....

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....le to the assessee which is a limited risk service provider. In this case, ratio of employee expenses to sales is only 8.82% which is extremely low for service company. However, the ratio of companies selected by the TPO himself have a ratio of employee expenses to sales in the range of 30-60% and ratio of assessee for the relevant assessment year under consideration is also 60%. If this comparabl....