TaxTMI 
TaxTMI 
2018 (3) TMI 1759
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....se and in law, the order passed by the Ld. Assessing Officer ("AO") is bad in law and void ab-initio 2. The Ld. AO/Ld. Transfer Pricing Officer ("TPO")/ Ld. Commissioner of Income Tax - (Appeals) ("CIT-A") erred on facts and circumstances of the case in determining the arm's length adjustment to the Appellant's international transaction from Associated Enterprises ("AEs"), thereby resulting in the enhancement of returned income of the Appellant by Rs. 15,163,336 3. That the reference made by the Ld. AO suffers from jurisdictional error as the Ld. AO has not recorded any reasons in the assessment order based on which he reached the conclusion that it was "expedient and necessary" to refer the matter to the Ld. TPO f....
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.... Ld. TPO/ Ld. CIT-(A) erred in accepting K P I T Cummins Infosystems Ltd as a comparable even though it does not clear the filter of wages/ sales of 40% to 80% as adopted by the Ld. TPO 5.1.2 The Ld. AO/ Ld. TPO/ Ld. CIT-(A) erred in rejecting L G S Global Ltd. and V M F Soft Tech Ltd. due to non-availability of data, even though their financial data is available in the public domain 5.1.3 The Ld. AO/ Ld. TPO/ Ld. CIT-(A) erred in rejecting Maars Software International Ltd., Melstar Information Technologies Ltd. and V J I L Consulting Ltd. even though these were not persistent loss making for consecutive three years (FY 2004-05 to FY 2006-07) 6 That the Ld. AO/ Ld. TPO/ Ld. CIT-(A) has erred in erroneously includi....
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....son done by the Appellant, the complete data for financial year 2006-07 was not available within the public domain 11 That the Ld. AO erred in facts and in law in charging interest under section 234B, 234C and 234D of the Act 12 That on the facts and circumstances of the case and in law, the Ld. AO has erred in initiating penalty proceedings u/s 271(l)(c) of the Act mechanically and without recording any adequate satisfaction for such initiation." 3. The brief facts of the case are that assessee is a subsidiary company of ZTE Corporation, engaged in trading of telecom equipment and mobile handsets. It is also engaged in provision of marketing support services, hardware support services, repair and maintenance services a....
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....(3) was passed on 09.02.2011, wherein the returned income of the assessee at Rs. 18291080/- was assessed at Rs. 49582150/-. The assessee aggrieved with the order of the ld AO preferred appeal before the ld CIT(A) who vide order dated 19.08.2014 partly allowed the appeal of the assessee. The assessee further aggrieved by the order of the ld CIT(A) has preferred appeal before us. 6. Though assessee has raised 12 grounds of appeal but in nutshell it was submitted that assessee objects to inclusion of Infosys Technologies Ltd as comparable taken by the ld Transfer Pricing Officer where the PLI of that comparable was 40.38% as per ground No. 6 of the appeal. The ld AR reiterated the submissions made before the ld CIT(A). He submitted that the....
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....omparability analysis for the software support services segment or not is the limited issue before us. It is important to note that assessee himself has selected Infosys Technologies ltd as a comparable company in its transfer pricing study report. That shows that at the time of preparation of transfer pricing study report assessee find himself that Infosys is having the similar FAR as compared to the assessee. Before the ld Transfer Pricing Officer the updated margins were also provided of this company and no objections were taken. This fact is evident from the letter of Transfer Pricing Officer dated 31.08.2010 addressed to the assessee. Furthermore, before the Transfer Pricing Officer vide letter dated 13.10.2010 has accepted the compara....
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....ed worldwide as pioneer in banking industry. The Director's report states that this particular software currently works in 54 countries and 91 banks. The Finacle software is a modular solution to the core banking and treasury, wealth management, consumer and corporate e-banking requirements of universal retail and corporate banks worldwide. Furthermore, the Hon'ble Delhi High Court in CIT Vs. Agnity India Technologies Pvt. Ltd 36 Taxmann.com 289 (Del) wherein, in para No. 6 on the similar arguments has approved the order of the coordinate bench for exclusion of this company compared with a company which is engaged in the business of development of software. In the present case the assessee is not even the developer of the software but m....