2019 (9) TMI 880

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....eration: "(a) Whether on the facts and in the circumstance of the case and in law, the Tribunal was justified in law in directing that the AO/TPO to make transfer pricing adjustment in respect of the international transaction only and not on the entire sales? (b) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in directing the TPO to exclude Genesys International Corp Ltd. from the set of comparable? (c) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in directing to grant risk adjustment without appreciating that the assessee has failed to show why risk adjustment is warranted by demonstrating the link of risk with t....

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....AD/CAM in Auto Parts;; (ii) In respect of the IT based Engineering Services provided by the Respondent to its AE, the Transfer Pricing Officer (TPO) had applied the Transaction Net Margin Method (TNMM) to determine the Arms Length Price (ALP) of the services rendered to its AE. For the aforesaid, the TPO had included M/s. Genesys International Corporation Ltd., (Genesys) as an comparable; (iii) In appeal the impugned order of the Tribunal excluded M/s. Genesys as a comparable. On facts, it found that M/s. Genesys was providing Geospatial technologies. It required skilled manpower and scientists as well as civil engineers to provide its services. Further, it noted that the services rendered by the Respondent is with regard ....

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....ed in law from withdrawing from its list of comparables, a company, if the same is found to have been included on account of mistake as on facts, it is not comparable. The Transfer Pricing Mechanism requires comparability analysis to be done between like companies and controlled and un-controlled transactions. This comparison has to be done between like companies and requires carrying out of FAR analysis to find the same. Moreover, the Assessee's submission in arriving at the ALP is not final. It is for the TPO to examine and find out the companies listed as comparables which are, in fact comparable. The impugned order has on FAR analysis found that M/s. Indowind Energy Ltd. and B.F. Utilities Ltd. are not comparable. They are in a differen....