AI Drafter 
TaxTMI 
TaxTMI 
2017 (9) TMI 1795
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....AT had not disposed of the contentions of the assessee on the issue of Transfer Pricing adjustment relating to international transaction of provision of Marketing Support Services. The Miscellaneous Application of the assessee was allowed and the order of the Tribunal dated 2.6.15 was recalled only for the limited purpose of adjudication on the issue of international transaction of provision of Marketing Support Services vide order dated 19.1.2017 in M.A. No. 342/Del/15. Accordingly, we proceed to hear both the parties on the issue relating to international transaction of provision of Marketing Support Services. 2. The facts of the case are that the assessee is a wholly owned subsidiary of Toluna US (formerly known as Greenfield US) whic....
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....d the Assessee to submit updated current year i.e. Financial Year ('FY') 2007-08 data for the comparable companies considered in its TP Documentation. Thereafter, the TPO made an adjustment to the Assessee's international transactions of 'Provision of Contract IT services' and 'Provision of Marketing Support Services' vide order dated October 25, 2011. The TPO, however, accepted the arm's length nature of the other international transaction entered into by the Assessee with its AEs. 2.3 The final set of comparable companies identified by the TPO in his order to benchmark the Assessee's international transactions of provision of Marketing Support Services are as follows: Provision of Marketing Support Services S. No. Comparable ....
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....ee approached the Hon'ble DRP. 2.6 The Hon'ble DRP issued the following directions to the TPO in reference to the Assessee's international transaction of marketing support services: * To exclude M/s Apitco Limited, M/s Rites Limited and M/s Vapi Waste & Effluent Mgmt. Co. Limited in the final comparable set for determining the revised ALP for the Assessee's international transaction in the nature of provision of Marketing Support Services. 2.7Accordingly, after incorporating the above changes in accordance with the directions issued by the Hon'ble DRP, the final comparable set is as follows: Sr. No. Name of the Company Revised Comparables Set - As per directions of the Hon. DRP 1 Best Mulyankan Consultants Limi....
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....ited was a company engaged in provision of technical consultancy. It was submitted that its website showed that this company was involved in environment and pollution control, technology management, financial services, administrative and legal services, project selection and project implementation services, energy and power services and therefore, this company was not a company which could be compared to the assessee company. Reliance was placed on the order of the ITAT Delhi Bench in the case of Intrepid Travels Pvt. Ltd. vs ADIT in ITA No. 5582/Del/2012 wherein vide order dated 27.2.2015 this company was excluded on the ground that this company was engaged in manufacturing activity and therefore had completely different FAR from the teste....
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....marketing support services along with IT enabled services. We find that Choksi has been excluded from the finals set of comparables in the case of Nortel Networks India Private limited vs ACIT reported in 164 TTJ 21 (Del) on the ground that companies providing end to end solutions could not be compared with assessees providing Marketing Support Services to the parent company and hence they were held to be functionally not comparable. ITAT Bangalore Bench has also taken a similar view. We find that Choksi Lab Ltd. is a commercial testing and analysis laboratory engaged in analysing food and agricultural products, cement and building material, chemicals, drugs and paints. The said services rendered by the company are calibration services, pol....