TaxTMI 
TaxTMI 
2019 (2) TMI 163
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....enterprise. (ii) On the facts and in the circumstances of the case, the DRP-II erred in directing TPO to exclude below mentioned companies from the final set of comparables : i) Bengal S R E Infrastructure Devp. Ltd. ii) Certification Engineers International Ltd. iii) Indus Technical & Financial Consultants Ltd. iv) Pallavan Transport Consultancy Services Ltd. v) Usha Hydro Dynamics Ltd. Vi) Rites Ltd. vii) NTPC Electric Supply Company Ltd." 3. The sum and substance of the grievance of the Revenue is that the DRP erred in excluding seven comparables on the ground that all of them are government companies and are, therefore, not good comparables. 4. The assessee company is engaged in providing design and engineering services property, environment, transport and infrastructure sectors. The assessee provides services to transform the built environment and restore the natural environment and its expertise ranges from environmental remediation to urban planning from engineering iconic buildings to designing sustainable transport networks and from developing the energy sources of the future to enabling new ways....
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....ged in the business of preparation of project reports on Sewage, storm Water Drainage, Transportation etc. It is a govt company. This is to be excluded as it is a Government Company with FAR ' not comparable. 3. Certification Engineers International Limited This Company is mainly providing consultancy and engineering services which are in the nature of technical services and thus is comparable to the Assessee. CEIL is engaged in provision of inspection and certification services. CEIL is a government owned entity. This is to be excluded as it is a Government Company with FAR not comparable. 4. Global Procurement Consultants Limited GPC is engaged in provision of procurement management services to government department and their project execution agencies which are in the nature of technical services and thus is comparable to the Assessee. GPC provides valuation, consultancy and financial advisory services. GPC acts as a client representative in taking the responsibility of procurement by providing procurement related advisory services. This is a good comparable in view of similar FAR. and thus is comparable to the Assessee....
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....ervices which are technical in nature and thus is comparable to the Assessee. Usha is engaged in the business of hydrojet cleaning of machines and retubing of turbine condensers and heat exchangers This is not a good comparable due to differences in FAR. It should be excluded. 12 IB1 Chematur (E&C) The company is engaged in engineering design and other services in the nature of technical services and thus is comparable to the Assessee. IB1 Chematur is engaged in diversified activities since apart from detailed engineering, the company also provides project planning and management services, erection supervision Procurement assistance, etc. This is a good comparable in view of similar FAR. 13 NTPC Electric Supply Limited The company is engaged in project management services which is in the nature of technical services and thus is comparable to the Assessee. The company is engaged in the business of generation of electricity and allied activities. NTPC is owned by the Government. This is to be excluded as it is a Government Company with FAR not comparable. 14 Rites Limited Rites consultancy services segment has been considered, in which Rit....
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....t significantly" 14. Let us now consider each comparable company. Bengal SREI 15. This company offers Transaction Advisory, Policy Advisory and Capacity Building, encompassing the entire gamut of Industrial and Urban infrastructure for projects like Jawaharlal Nehru National Urban Renewal Mission Programme of the Government of India and similar assignments from West Bengal Tourism Development Corporation Ltd. This company was formed as a joint venture with the West Bengal Industrial Development Corporation which is a Government of West Bengal undertaking. Most of the Revenue comes from government and functions performed by this company are also not comparable with that of the assessee. Exclusion is upheld. Certification Engineers International Ltd 16. This company is providing services related to certification, re-certification, safety audit and Health and Safety management systems, inspection of equipment and installations in the Hydrocarbon Industry to central government and state owned enterprises. 100 percent shares are held by Engineers India Ltd. and its nominees and 80.40% shares of Engineers India limited are held by President of India and rest are held by go....