2019 (5) TMI 1211

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..... ITA 420/2019 2. This is an appeal by the Revenue against an order dated 23rd August 2018 of the Income Tax Appellate Tribunal ('ITAT') in ITA No.1551/Del/2015 for the Assessment Year 2010-2011. The Revenue is aggrieved by the ITAT excluding as many as ten comparables proposed by the Revenue for the Transfer Pricing Analysis in respect of the international transactions of the Respondent-Assessee. 3. The Transfer Pricing Officer ('TPO') in the order dated 24th January 2014 described the profile of the Assessee as "primarily engaged in data processing which is rendered to overseas affiliated and unrelated entities, based on the specific requirements of the customers." From Financial Year 2007-2008 the Assessee "has also engaged in C....

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....s high/extremely high profits/losses does not, ipso facto, lead to its exclusion from the list of comparables for the purposes of determination of ALP. In such circumstances, an enquiry under Rule 10B(3) ought to be carried out, to determine as to whether the material differences between the assessee and the said entity can be eliminated. Unless such differences cannot be eliminated, the entity should be included as a comparable." 7. The Court notes that there is a discussion in Chrys Capital Investment Advisors India (P.) Ltd. (supra) of the decision in Agnity India Technologies Pvt. Ltd. (supra) in the following manner. "The assessee had during the hearing, heavily relied on OECD guidelines and another Division Bench ruling in....