TaxTMI 
TaxTMI 
2017 (11) TMI 1895
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....aised by the assessee as per revised grounds of appeal are as under: "GENERAL 1. The assessment order dated January 27, 2015 passed by the learned Assessing Officer ("AO") pursuant to the directions passed by the Honorable Dispute Resolution Panel ("DRP") is not in accordance with the law and is contrary to the facts and circumstances of the present case and in any case in violation of the principle of equity and natural justice. TRANSFER PRICING 1. The Honourable DRP and the learned AO erred in fact and in law in making an adjustment to the Arm's Length Price ("ALP") of the international transactions of the Appellant in the software development segment; 2. The Honorable DRP and the lea....
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....rsistent Systems and Solutions Limited 7. The Honourable DRP has erred in upholding the action of the TPO in rejecting the following companies selected by the Appellant despite the same being functionally comparable to the Appellant and qualify the legally acceptable criteria for comparability: - Akshay Software Technologies Limited - LGS Global Limited - Quintegra Solutions Limited - Helios and Matheson Information Technology Limited - Silverline Technologies Limited - Sagarsoft India Private Limited - R Systems International Limited 8. The Honorable DRP has erred in upholding the Learned TPO/AOs action of wrongly comp....
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....of Karnataka in the case of M/s Tata Elxsi Ltd., which has not become final since the same has not been accepted by the Department and SLPs are pending before the Hon'ble Supreme Court. 4. On the facts and in the circumstances of the case, whether the Hon'ble Dispute Resolution Panel can make adjustment on the basis of advance received from AEs in absence of debtors and inventory in the case of assessee for calculating the cost of working capital built in the profit margin. 5. On the facts and in the circumstances of the case, whether the Hon'ble Dispute Resolution Panel were justified in directing the TPO to adjust the profit margin of the assessee for the entire amount of advances received from AE on the grou....
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....set aside an issue. 12. For these and other grounds that may be urged at the time of hearing, it is prayed that the directions of the Dispute Resolution Panel in so far as it relates to the above grounds may be reversed. 13. The appellant craves leave to add, alter, amend and / or delete any of the grounds mentioned above." 4. At the very outset, it was pointed out by the bench that as per ground no. 10 of the appeal of the revenue, it is the grievance of the revenue that the DRP was not correct in applying onsite filter in software development segment in the case of M/s. RS Software India Ltd. As per ground no. 9, this is the grievance of the revenue as to whether the application of new filter (Onsite filter) is within....
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....ar that it is predominantly onsite software development company and therefore, it cannot be retained as comparable. The DRP directed the AO to exclude this company from the list of comparables. Before us, as per the revised grounds of appeal filed by the assessee as reproduced above, assessee is objecting to the exclusion of this comparable i.e. M/s. RS Software India Ltd. but there is no objection on this aspect in the grounds raised before us that onsite filter should not be applied. Onsite filter is very relevant and important filter in TP study and therefore, it cannot be said that onsite filter cannot be applied. Hence, we hold that in the facts of the present case, onsite filter has to be applied but since it was applied by the DRP to....