2017 (12) TMI 1680

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....ppellant. ORDER The assessee is engaged in the business of healthcare claims adjudication, software development and bio-pharmaceuticals services. For the relevant period, it also enjoyed the benefit of Section 10A of the Income Tax Act, 1961 [hereafter "the 1961 Act]". Its returns of income and the orders made thereon by the Transfer Pricing Officer/Assessing Officer, as dealt with by the In....

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....s appealed against; the Disputes Resolution Panel (DRP) upheld the assessee‟s claims with respect to the two entities, i.e., E-Infochips Bangalore Ltd. and Infinite Data Systems Pvt. Ltd. The DRP and the ITAT held that these two entities carried out high-end technology-driven services, which is not the functional profile of the assessee. The functional profile of the comparables, noticed ....

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....nagement and also ventured into legal process outsourcing and high-end software service delivery which were radically different from the assessee‟s activities which are outlined above. The Court is of the opinion that this reasoning is sound. For the purposes of transfer pricing exercise, the Revenue has to ensure the functional similarities and exclude comparison of entities where there ....

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....Gate Global Solutions Limited‟s functioning is similar to that of the assessee, the appeal deserves to be admitted on that aspect. Admit. The following questions of law arise for consideration:- i) Did the ITAT fall into error in holding that I-Gate Global Solutions Limited underwent significant change in its profitability in view of the amalgamation undergone, having regard t....