TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 278
X X X X Extracts X X X X
X X X X Extracts X X X X
....applications developer, providing services on behalf of and to the Avaya group entities, is a subsidiary of Avaya International LLC. They also provides marketing support services to its associated enterprises ("AEs") which includes management, assistance in advertising and promotion of the products sold by the Avaya group. Apart from this, the assessee provides back office support services to its associated enterprises and these services includes provision of services relating to indirect billing, fixed assets, accounts payable, accounts receivable, etc. 3. During the financial year 2010-11, the assessee provided software development services ; information technology enabled services and marketing support services to its associated enterprises on cost plus mark-up basis and availed of the management support services in the nature of legal, finance, human resource, information technology support and other support services from Avaya Singapore. 4. They have filed their return of income for the assessment year 2011-12 on November 21, 2011. The learned Assessing Officer, in the scrutiny proceedings found that during the relevant assessment year 2011-12, the assessee undertook the fol....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er passed by the learned Transfer Pricing Officer, the learned Assessing Officer issued a draft order dated February 12, 2015 under section 144C of the Act wherein he proposed to assess the total income of the assessee in conformity with the arm's length price determined by the learned Transfer Pricing Officer vide his order. 7. Aggrieved with the draft assessment order, the assessee filed its objections before the hon'ble Dispute Resolution Panel ("DRP") as provided in section 144C of the Act. The learned Dispute Resolution Panel provided working capital adjustment to the assessee on the comparables selected by the learned Transfer Pricing Officer. 8. Thereafter, in tune with the directions issued by the hon'ble Dispute Resolution Panel, the learned Assessing Officer made an adjustment of Rs. 20,46,63,746 vide its assessment order dated November 23, 2015 in the assessee's case, thereby assessing the total income of the assessee at Rs. 91,96,36,031 as against an income of Rs. 71,49,72,285 disclosed by the assessee in its Income-tax return. 9. Pursuant to the final assessment order passed by the learned Assessing Officer, the appellant filed a rectification applic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat HSCC (India) Limited is engaged in multiple business activities, rendering the services in the fields of healthcare facility design, engineering and design, conceptual studies, project management, and installations, procurement and purchase ; whereas the assessee is involved in various services under the heads payroll arrangements, pension, insurance for the crew and also recruits engineers. It is further submitted that as could be seen from the annual report of this company, HSCC (India) Limited has no segmental accounts. According to the assessee, this company is functionally dissimilar and is engaged in the business of HSCC is rendering comprehensive range of high-end professional consultancy services in the areas of healthcare and abroad. 15. Further argument to say that this entity is not a suitable comparable, is that it is a wholly owned Government enterprise and a Government backed entity, providing majority of its services in Government projects like upgradation and development of Government Medical College, upgradation of healthcare facilities, etc., the learned authorised representative submitted that these companies secure key contracts through backing of the Gover....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gh Court in the case of Thyssen Krupp Industries India P. Ltd. (supra) have been followed by the co-ordinate Benches of this Tribunal in a number of cases, namely, in the case of Bechtel India Pvt. Ltd. v. Dy CIT (I. T. A. Nos. 1476 and 1477/Delhi/2015), Dy. CIT v. Terex India (P.) Ltd. [2019] 71 ITR (Trib) 259 (Delhi) ; [2019] 104 taxmann.com 281 (Delhi-Trib.) for the assessment year 2011-12, Granite Services International (P.) Ltd. v. Asst. CIT [2017] 87 taxmann.com 24 (DelhiTrib.) the assessment year 2011-12, etc., and HSCC (India) Ltd. is held to be a bad comparable with the companies like the assessee and it was excluded from the list of comparables. 19. From the above, it is clear that a consistent view has been taken by the co-ordinate Benches of this Tribunal in view of the decisions of the hon'ble High Court of Bombay in the case of Thyssen Krupp Industries India (P.) Ltd. (supra) and the High Court of Delhi in the case of Pr. CIT v. International SOS Services India P. Ltd. (supra), that because of the absence of the profit motive and discharge of the social obligations, the Government companies stand on a different pedestal and are not good comparable to the entities....