2016 (5) TMI 1348

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ER 1. The Revenue proposes two questions of law, i.e., (1) the correctness of the exclusion of two comparables in the transfer pricing exercise carried out in the assessee's case, and the remand in the case of one comparable company; and (2) the refusal in the impugned order to give effect to the "Safe Harbour Rules" under Section 92 CA(3) so as to exclude the element of gain on account of fore....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ected the assessee's contentions. 3. The Income Tax Appellate Tribunal ("ITAT") to which the assessee appealed excluded its companies holding that the inclusion of Persistent Systems Ltd. and Wipro Technology Services (WTS) was unwarranted. It, however, remitted the issue with respect to Zylog Systems Ltd. to ascertain the audited segmental data for ultimately deciding the comparable component ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....was not justified in law. 5. The proceedings before the TPO clarified that the assessee had not proposed Persistent Systems Ltd. or Zylog Systems Ltd. There is no doubt that it did propose 75% service built up. However, the TPO suo motu appears to have included the data of three companies holding that they were functionally similar. The question as to whether indeed they are functionally simila....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tracts pertaining to the work of the Citi Group continued to be with the newly created entity, i.e., Wipro Technology Services. Equally importantly, is that there was no published segmented data as far as software development or its finances were concerned with respect to Wipro Technology Services. In these circumstances, the findings of the ITAT are purely factual and cannot be gone into as no su....