TaxTMI 
TaxTMI 
2018 (12) TMI 1070
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....ure and needs no separate adjudication. 3. Ground No. 2, with its sub grounds, relates to the addition of Rs. 6.87 crores to the income of assessee, allegedly on account of difference in the arm's length price of the international transaction of provision of software development services. 4. Briefly stated, the facts of the case are that the appellant company is a subsidiary of Pitney Bowes Software Inc., USA and is engaged in the business of providing end-to-end business solutions in location Intelligence, which combines technology, data and services with domain expertise to enable an organization to measure, compare, visualize its business data. 5. The international transactions undertaken by the assessee company with its AEs, as....
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....tone Technologies Ltd (iii) Nucleus Software Exports Ltd & (iv) Polaris Enterprise Solutions Ltd. 9. After rejecting the aforementioned comparables, the TPO included other comparables. The comparables finally used by the TPO are as under: S. No Name of the Company OP/OC (%) 1 Ace Software Exports Ltd -0.58% 2. Acropetal Technologies Ltd 1.83% 3. Akshay Software Technologies Ltd 0.44% 4. Alcatel-Lucent India Ltd 10.71% 5. Birlasoft (India) Ltd 32.83% 6 CG- VAK Software & Exports Ltd 10.16% 7. Larsen & Toubro Infotech Ltd 26.76% 8. Mindtree Ltd 19.42% 9. Persistent Systems Ltd 34.48% 10....
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....s used certain filters keeping in mind the profile of the assessee and one of the filters is to reject the companies whose transaction with related party is more than 25% of its turnover. In the case of Birla Soft India Ltd, total sales is at Rs. 467 crores and the total related party transactions amounts to Rs. 377 crores which is about 80% of the total sales. These facts are clearly in contradiction to the filter applied by the TPO and, therefore, this company deserves to be excluded from the final set of comparables. WIPRO Ltd. 16. The finances of this company shows that it is engaged in the provision of IT services, including Business Process Outsourcing [BPO] and I.T. products. Moreover, the Annual Report of this company states t....
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....ers [PES]. From the total segmental operating profit, this company has deducted unallocable expenses, which means that the operating margin of industrial cluster segment selected by the TPO is devoid of unallocable expenses as the same has been deducted from the total segmental profit. 21. In our considered opinion, such segmental accounts cannot be accepted as the company is having unallocated expenses. For similar reasons, in assessee's own case in assessment year 2013-14, the Tribunal has excluded this company at the threshold in ITA No. 7034/DEL/2017. Considering the peculiarity of the facts of this company in the light of the findings of the co-ordinate bench, we direct for exclusion of this company. TATA TECHNOLOGIES LIMITED ....