TaxTMI 
TaxTMI 
2019 (12) TMI 902
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.... Income-tax (Appeals)-44, New Delhi in an appeal challenging the orders passed by the ld. TPO/AO qua the assessment year 2011-12 on the grounds inter alia that :- "1. Ld. CIT(A) erred in law and on facts in directing Transfer Pricing Officer to include R. System International Ltd. In comparable, since the data of M/s R System International Ltd. is not available for finical year 2010-11 and audited recasting of data may distort the profitability. 2. Ld. CIT(A) erred in law and on facts in directions the AO/TPO to apply nil rate as arm's length interest rate on outstanding receivables from AE as in identical facts in assessee's own case for A.Y. 2010-11. The DRP has upheld such adjustments." 3. Briefly stated the ....
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....r:- Particulars Amount Income from consultancy services 401,960,248 Reimbursement received 48,642,007 Operating Income 450,602,255 Personal expenses 227,535,858 Operating and administrative expenses 80,923,087 Less Foreign exchange loss (net) (498,709) Bank charges (21,888) Depreciation and amortization 8,612,748 Reimbursement received 48,642,007 Total cost (TC) 365,193,103 Operating Profit (OP) 85,409,152 OP/TC 23.39% Add Other income 771,957 Less Foreign exchange loss (net) 498,709 Bank charges 21,888 Finance charges 14,580,770 Profit Before Tax as per profit and loss account 71,079,742 5....
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....e TPO/AO on account of TP adjustment by partly allowing the same. Feeling aggrieved, the Revenue has come up before the Tribunal by way of filing the present appeal. 8. We have heard the 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. GROUND NO.1 9. Undisputedly, the TPO as well as ld. CIT (A) have accepted TNMM with OP/TC as PLI as MAM applied by the taxpayer to benchmark the international transactions qua provision of consultancy service. Now, the Revenue has challenged the order passed by the ld. CIT (A) only to the extent that the ld. CIT (A) has erred in law and facts d....
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....data of R Systems Pvt. Ltd. has available in public domain. I rely on the judgment of Hon'ble Delhi Tribunal in the case of Mercer Consulting (India) Put. Ltd. Vs. DCIT (ITA No. 966/Del/2014) to include R Systems International Ltd. for IT Segment. Respectfully, following the decision of Hon'ble Tribunal in the case that Mercer Consulting cited supra, I direct the AO /TPO to include R Systems International Ltd. (ITS Segment), in the final list of comparables. As the Ld AR has argued that even only this comparable namely R systems Ltd. International Ltd. is included in the final list, operating margin earned by the appellant will fall within the arms length, there is no need to adjudicate all other comparables. Ld AO /TPO as directed ....
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....as been upheld by Hon'ble High Court in ITA No.1053 of 2012. However, ld. AR for the taxpayer contended that this issue is entirely covered by taxpayer's own case in ITA No.3693/Del/2014 for AY 2009-10 order dated 22.02.2018 thereby identical addition made on account of delay of receivables for the same period has been deleted. 15. We have perused the order passed by the coordinate Bench of the Tribunal in taxpayer's own case for AY 2009-10 (supra) which has considered the period of outstanding receivables ranging from 38 days to 1718 days and in most of the invoices, average delay is more than 300 days and proceeded to hold that no interest can be imputed on receivables with AE. Operative findings of the Tribunal in taxpayer's own case ....