TaxTMI 
TaxTMI 
2019 (5) TMI 838
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....rcumstances of the case, the final assessment order passed by the Ld. A.O. is barred by limitation having been passed beyond the time prescribed under Section 144C(13) of the Act. 3. On the facts and circumstances of the case, the Ld. A.O. has erred, both on facts and in law, in assessing the income of the assessee at Rs. 9,07,33,200/- as against returned loss of Rs. 6,95,65,715/- declared by the assessee. 4. On the facts and circumstances of the case, the Ld. DRP has erred, both on facts and in law, in confirming addition to the extent of Rs. 2,09,91,628/-on account of difference in arm's length price. 5(i) On the facts and circumstances of the case, the Ld. DRP has erred both on facts and in law, in confirming the inclusion of the following comparables taken by the Ld. TPO: (i) Mitcon Consultancy & Engineering Services Ltd. (ii) IBI Chematur (Engineering & Consultancy Ltd) (iii) Mahindra Consulting Engineers Ltd. (ii) That the above action of Ld. TPO has been confirmed despite the fact that the assessee brought significant material & evidences on record to demonstrate that the line of activities of these ....
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....se of fixed assets amounting to Rs. 2,11,67,863/- and the reimbursement amounting to Rs. 18,17,639/-, which are not part of the revenue, while computing the total value of the international transactions and determining the adjustment to be made consequent to the arm's length price. (ii) On the facts and circumstances of the case, the Ld. DRP has erred in not directing the Ld. AO to consider value of the international transaction at Rs. 19,88,18,571/- as against Rs. 22,18,04,073/- taken by the Ld. TPO. 13. On the facts and circumstances of the case, the Ld. DRP has erred on both facts and in law in confirming the action of TPO in rejecting the calculation of the assessee for making appropriate adjustment to account for varying risk profiles and difference in working capital of the assessee vis-a-vis comparables. 14. On the facts and circumstances of the case, the Ld. AO has erred on both facts and in law, in not following the direction of the DRP that the benefit of arm's length range of +/- 5% be given in view of the proviso to Section 92C(2) of the Act. 15. On the facts and circumstances of the case, the Ld. AO has erred in not complying....
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....ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 7. Ld. TPO in order to benchmark international transaction undertaken by the taxpayer with its AE qua "consultancy and professional fee and other services", used TNMM as the Most Appropriate Method (MAM) with OP/OC as PLI introduced 9 new comparables after retaining one comparable of the taxpayer. Final set of comparables with their PLI is as under :- Comparables Without WC Adj. WC Adj. PLI Acropetal Technologies Limited (Seg.) 12.56% 4.25% Cades Digitech Pvt. Ltd. (Merged) 5.19% 3.71% H S C C (India) Ltd. 17.38% 11.94% IBI Chematur (Engineering & Consultancy) Ltd. 20.61% 21.47% Kitco Ltd. 21.56% 23.08% Mahindra Consulting Engineering Ltd. 23.62% 23.19% Mitcon Consultancy & Engg. Services Ltd. 28.67% 30.77% Project and Development India Limited (Seg.) 27.13% 25.15% Rites Ltd. 36.82% 34.27% T C E Consulting Engineers Ltd. 22.66% 20.92% Average 21.62% 19.91% 8. Ld. TP....
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....ed by the Government of India which is extracted for ready perusal as under :- "5.3 Income from the facilities at Bio Technology Incubation Centre is accounted as follows: a) Revenue from training 10 entrepreneurs is recognised when received. b) Revenue from the hand - holding services to incubates and other entrepreneurs is recognized on rendering the related services & completion of job / assignment. c) Revenue from infrastructure use is recognized on completion of assignment. d) Revenue from Environment Laboratory is accounted on the basis of completion of the assignment / job. 5.4 The income under Prime Ministers Rojgar Yojana (PMRY), Special Component plan (SCP), Swamjayanti Gram Swarozgar Yojana (SGSY) and Swama Jayanli Shahan Rozgar Yojana (SJSRY) is accounted on gross basis ( Previous year On net off expenditure) based on certificates received from implementing agencies evidencing the completion of the training programme." 14. When we examine the profit & loss account of Miton for the year ending 31.03.2011, available at page 732 of the paper book, it shows that Miton has incurred expenses on providing vocational trai....
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.... Your Company has employed highly trained Technical staff. Your Company is also marketing these capabilities in the domestic as well as overseas market. Your Company is in a process of using Smart Plant foundation for document management system for managing revision and versions of the documents. Company is planning to bring Technologies of BIOSTIL 2000 Process. These Technologies find synergy with BIOSTlL 2000. The activity in BIOSTIL 2000, takes us to Sugar Industry, which remains as the biggest Biomass Processors in the Country. Your Company continues to carry out Domestic Business activities in" IBIC Engineering (div.of IBI Chematur ( Engg & cony) Ltd) division of the Company as stated in last year." 20. When we examine P&L account of IBI Chematur at page 754 of the paper book, it shows that it has income of sale of engineering equipment to the tune of Rs. 99,275,000/-, whereas segmental financials are not available. Furthermore, it also fails service revenue filter which is 63.47%. Furthermore, IBI Chematur has spent Rs. 113,50,446/- as R&D expenditure which is 3.93% of the turnover as against nil R&D expenditure of the taxpayer which is a captive service provider. 21. C....
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....ones, water supply and 7H, solid waste management, urban infrastructure, agree and for cultural infrastructure, social infrastructure, ports and harbor off shore etc. The Ld. Authorised Representative has stated that the functional profile of the company is not comparable. We have carefully perused annual report of the company submitted by the Assessee at page No. 305 - 323 of the paper book wherein it is clearly demonstrated that the Assessee is engaging the consulting services and it is only a reportable segment of consultancy services. Looking at the functional profile of the Assessee as well as the comparable company, it is apparent that both are engaged in the consultancy services area. Merely because they are providing consultancy in a different field, it does not make their functional profile dissimilar, unless there are vast differences in the functions performed. In view of this we do not find any reason to exclude this comparable and therefore we held that the Ld. TPO is correctly included this company for comparability analysis." 25. So, following the decision rendered by the coordinate Bench of the Tribunal in BG Exploration and Production India Ltd. (supra), we are ....