TaxTMI 
TaxTMI 
2018 (8) TMI 574
X X X X Extracts X X X X
X X X X Extracts X X X X
....r our consideration: " Whether on the facts and in the circumstances of the case and in law, the Tribunal is justified in law in excluding M/s. E Zest Solutions Ltd., M/s. FCS Software Ltd., M/s. KALS information Systems Ltd. and M/s. Bodhtree Consulting Ltd. from the set of comparables selected by the TPO ?" 3 The Respondent/Assessee is engaged in rendering software development services to its Associated Enterprises (AE) worldwide on captive basis at cost plus basis. For the purposes of determining the Arm's Length Price (ALP) of the services rendered by the Respondent to its AE's, the impugned order excluded EZest Solutions Ltd., Kals Information Systems Ltd., Bodhtree Consulting Ltd., Infosys Technologies Ltd., FCS Software S....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... EZest Solutions Ltd by the Tribunal is a finding of fact which cannot be disturbed in the absence of any perversity being shown. (ii) Kals Information Systems Ltd. (a) On facts the Tribunal again placed reliance upon the order of its coordinate bench in case of M/s. Symphony Services (Pune) Pvt. Ltd. (Supra) since it was on facts for the subject assessment year. In the above case, it was found that Kals Information Systems Ltd. was engaged in developing and selling software which is functionally different from software development services performed by the Assessee therein and also the RespondentAssessee herein. (b) No distinctive feature in this case from that in M/s. Symphony Services (Pune) Pvt. Ltd. was shown before the Tribunal ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Assessment Year 200910 on the same issue. (c) Mr. Suresh Kumar for the Revenue submits that this appeal requires admission. This for the reason that the decision of the Tribunal in QLogic (India) Private Ltd. (Supra) relied upon by the impugned order was challenged in this Court as being Income Tax Appeal No.1205 of 2015 decided on 5.12.2017. This appeal of the Revenue has been admitted on the following substantial question of law: " Whether on the facts and in the circumstances of the case and in law, the Tribunal is justified in directing the Assessing Officer to exclude the concern namely M/s. Bodhtree Consulting Limited in the final set of comparables when the same concern has been included in the set of comparables by the asses....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ered by the Tribunal on 7.3.2014 carried out further analysis and concluded that high profit margin of FCS Software Solutions Ltd. was not a normal business condition. Consequently, the same could not be considered as comparable. (c ) It is pertinent to note that before the Tribunal the Revenue has not disputed the above factual analysis submitted by the Respondent and accepted by the Tribunal to hold that high profit margin for the subject Assessment Year was abnormal. Even today nothing is shown to us as to why analysis done in the impugned order to conclude that the high profit margin are abnormal for the subject Assessment Year and therefore it could not be included as comparable. (d) Thus, we see no reason to interfere with the fin....