2017 (7) TMI 1314

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.... facts and circumstances erred by directing AO to exclude FCS Software Ltd. as comparable when the Delhi ITAT in case of Navisite India (P) Ltd. (TS 193 ITAT 2013) has carried out functional analysis of said company and held to engaged in the business of software development. 2. Whether Ld. CIT(A) in the facts and circumstances erred by directing AO to exclude Infosys Technologies Ltd. and L & T Infotech Ltd. as comparable only on the ground high turnover and without analyzing the FAR of the comparable. 3. For these and such other grounds as may be urged at the time of hearing, the order of the Ld. Commissioner of Income Tax (Appeals) may be vacated and that of the Assessing Officer be restored. 3. Despite service of no....

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.... undertaken by the assessee had selected 11 concerns as comparable. The assessee was aggrieved with the selection made by the TPO and applied by the Assessing Officer and appealed against the order of Assessing Officer / TPO. 6. The CIT(A) directed that FCS Software Ltd, Infosys Technologies Ltd. and L & T Infotech Ltd. are to be excluded from the final list of comparables in order to benchmark the international transactions of provision of software services to its associated enterprises. 7. The first objection raised by the Revenue is against exclusion of concern FCS Software Ltd. from the list of comparable companies. The CIT(A) had noted from the annual report of the company that the said concern had earned 42% of its total revenue....

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....e TPO, the said concern is to be excluded from the final list of comparables. Accordingly, we uphold the order of CIT(A) and dismiss the ground of appeal No.1 raised by the Revenue. 9. The next issue raised by the Revenue is against exclusion of Infosys Technologies Ltd. and L&T Infotech being not comparable for not fulfilling the filter of turnover and also the brand. 10. We find that similar issue of exclusion of Infosys Technologies Ltd. and L&T Infotech Ltd. arose before the Tribunal in TIBCO Software India Pvt. Ltd. Vs. DCIT in ITA No.276/PUN/2015 and DCIT Vs. TIBCO Software India Pvt. Ltd. in ITA No.334/PUN/2015, relating to assessment year 2010-11, order dated 31.01.2017 and was held as under:- "38. The issue raised in....