TaxTMI 
TaxTMI 
2020 (2) TMI 724
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....e clubbed these appeals for disposal by this consolidated order. A.Y. 2010-11 2. The ld. AR submitted at the very outset that the assessee filed appeal after the filing of the appeal by the Revenue against the order passed by ld. CIT(A). Since the Revenue's appeal has already been dismissed because of low tax effect, the ld. AR submitted that the assessee was not interested in prosecuting the instant appeal. He made prayer for withdrawal of the appeal. The ld. DR did not raise any objection to the request of the ld. AR. We permit the assessee to withdraw the appeal. 3. In the result, appeal is dismissed as withdrawn. A.Y. 2011-12 4. The assessee has preferred the instant appeal against the order passed by ld. CIT(A) on 29.12.....
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....tion was at ALP. The TPO did not disturb the application of the TNMM as most appropriate method nor the PLI. He simply made certain inclusions and exclusions in/from the list of comparables put forth by the assessee and accordingly proposed transfer pricing adjustment of Rs. 2,58,17,445/- in the transaction. The ld. CIT(A) gave certain directions including upholding the inclusion of E-Infochips Ltd. and directing to exclude FCS Software Solutions Ltd., L&T Info Tech Ltd., Persistent Systems Ltd., Infosys Technologies Ltd. and Sasken Communication Technologies Ltd. Whereas, the assessee is aggrieved by the inclusion of E-Infochips Ltd. in the list of comparables, the Revenue has trained its guns against the exclusion of the above noted five ....
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....hips Ltd., which transpires income from software services at Rs. 19.21 crore (74%); consultancy charges at Rs. 2.90 crore (11%); and hardware maintenance at Rs. 3.92 crore (15%). We have gone through the Profit & Loss Account of this company, a copy of which is available at page 773 of Paper Book. It can be seen that the figure of total revenue given in the income matches with the figures adopted by the TPO. When we look at the figures of expenses, it turns out that as against Employees related costs of Rs. 6.85 crore, this company incurred Manufacturing and other operating expenses of Rs. 12.56 crore. This shows that this company is not only engaged in rendering software development services but also substantially into the manufacturing....
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....d that if E-Infochips Ltd. is excluded from the list of comparables, then there is no need to argue further on other issues taken up by the assessee in its appeal. 10. Now, we espouse the appeal of the Revenue in challenging the exclusion of five companies, viz., FCS Software Solutions Ltd., L & T Info Tech Ltd., Persistent Systems Ltd., Infosys Technologies Ltd. and Sasken Communication Technologies Ltd. FCS Software Solutions Ltd. 11. The TPO included this company in the list of comparables. The assessee objected to the inclusion by contending that this company made sales at Rs. 115.99 crore, which is several times higher than the turnover of the assessee company at Rs. 17.87 crore. In addition, the assessee also gave certain oth....
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....t by managing the client services either on client sites or at Data Centers or in our premises in 24x7 environment. We also set up data centers for clients globally, on which, our engineers remotely or onsite manage all Hardware, Network, LAN/WAN, Data and voice networks in accordance of the client needs to run their applications'. Revenue under the head 'Education' is at 36%. This company has its clients along with their employees, vendors and dealers to better their performance to deal with fast engineering environment. It has been awarded a large project to train police in Madhya Pradesh, management of 6 ITIs in Haryana, Delhi and Punjab and five senior secondary schools in Punjab. A brief description of the nature of services rendere....