2018 (1) TMI 1566

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....ment. 2. The Revenue has raised following grounds :- (1) 0n the facts and in the circumstances of the case, the CTT(A) has erred in deleting the adjustment to ALP made by the AO/TPO. (2) On the facts and in the circumstances of the case, the CIT(A) has erred in accepting the comparable M/s Accuspeed Engineering Design Services Limited ignoring the fact that its turnover was 125 times lower than that of the assessee company and its operational parameters would, therefore, be not comparable to that of the assessee company. (3) On the facts and in the circumstances of the case, the CIT(A) has erred in accepting M/s Cades Digitech Private Limited as a comparable by relying on the subsequent year information, even t....

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....ndia Limited, M/s. Rites Limited and M/s. WAPCOS Limited cannot be considered as comparable companies. In this regard, the learned CIT(A) has followed the decision rendered by Mumbai Bench of the ITAT in the case of CIT Vs. Thyseen Krupp Industries India P. Ltd. (ITA No.6460/Mum/2012). He submitted that the revenue is aggrieved by the said view taken by Ld CIT(A). The Learned AR submitted that an identical issue came to be considered by the Coordinate Bench of the Tribunal in assessee's own case in ITA No. 7194/Mum/2012 relating to A.Y. 2008-09 and the Tribunal followed the decision rendered in the case of Thyseen Krupp Industries India P. Ltd. (supra) and also other decisions and held that the Government companies cannot be taken as compar....

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....t driven by profit motive along but other consideration also weigh in such as discharge of social obligations etc. Identical view has been expressed in other cases also. The view taken by the Tribunal was not found fault with by the Hon'ble Bombay High Court. 12. In the instant case, the comparables viz., Engineers India Ltd and Water and Power Consultancy Ltd are Government Companies. Accordingly, consistent with the view taken in the cases referred to preceding paragraph, we hold that the Government Companies cannot be taken as Comparable." We notice that the view taken by Ld CIT(A) is in accordance with the view taken by the Tribunal in the assessee's own case. Accordingly, we do not find any reason to interfere with his orde....