2018 (8) TMI 1202

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....ce of the Revenue is that the DRP erred in directing to reduce/delete the addition/disallowance of Rs. 1,80,44,570/- on account of arm's length price of international transaction related to provision of I.T. services. 3. At the very outset, the ld. AR pointed out that the grievance raised by the Revenue is neither here nor there as it is not coming out from the ground why the Revenue is aggrieved because the amount mentioned in the ground of appeal is not coming out anywhere from the order of the DRP. 4. Per contra, the ld. DR sought time for revising the ground of appeal. 5. We have given thoughtful consideration to the points raised by the ld. AR. We have carefully perused the order of the DRP. We find force in the contention of ....

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....d. 40.20 2 Cosmic Global Ltd. 20.29 3 e4e Healthcare 31.55 4 Fortune Infotech Ltd. 21.38 5 l-gate Global Ltd 24.09 6 Infosys B P O Ltd. 30.17 7 Jindal Intellicom Ltd. 14.95 8 Omega Healthcare 13.11 9 T C S E-Serve International Ltd.  5.43 10 T C S E-Serve Ltd. 65.27   Average 31.81 8. Accordingly, the arm's length of the international transaction related to provision of I.T. enables services was computed as under: Operating Cost(A) 32,03,40,125 Arm's Length Margin (%) 31.81% Margin (B) 10,19,00,194 Arm's Length Price(A+B)=C 42,22,40,319 Price Charged by the assessee(D) 40,02,92,121 Proposed Adjustment ....

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.... 37,16,60,657/- Price received Rs. 33,51,58,550/- Proposed adjustment u/s 92CA Rs. 3,65,02,107/- 11. And finally the cumulative adjustments were determined as under: Nature of international transaction  ALP determined by the assessee (INR)  ALP determined by TPO (INR) Difference (INR) Provision of IT Enabled services  40,02,92,121 42,22,40,319  2,19,48,198 Provision of software development services 33,51,58,550 37,16,60,657 3,65,02,107 Total adjustment u/s 92CA  5,84,50,305     12. Aggrieved by this, the assessee carried the matter before the DRP and strongly supported the comparables used by it. It was brought to the notice of the DRP that ....

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....e development and ITES. This company is a partner of choice of Fortune 500 companies for product innovation and hi-tech engineering consulting and has provided solutions to key verticals like Aerospace & Defense, Consumer Electronics, energy and Utilities, healthcare, home, office and industrial automation, media and broadcast, medical devices, retail and e-commerce, security and surveillance, semiconductor, software/LSV and storage and computer covering every aspect of the product life- cycle. This company is also into Board designs. From a careful perusal of the profit of this company, we find that this company is equipped to carry out high-end technology driven services and product development which is not the Profile of the assessee. Th....