TaxTMI 
TaxTMI 
2020 (8) TMI 441
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....arable in design engineering service segments of assessee. 5. The facts of the case are that the assessee entered into international transactions with its AE for Rs. 58,58,86,146/- for design engineering services and adopted the TNMM as most appropriate method. The assessee in its TP study for the above said transaction selected 15 companies as comparables and shown OP/OC at 17.15%. The AO rejected Coral Hub Limited by stating it is not functionally comparable. The DRP in its order at page 23 vide para 7.31 held the functions of Coral Hub Limited and the assessee are similar and directed the AO to treat the same in the final set of comparables. 6. Before us, the ld. DR drew our attention to the Seventeenth Annual Report of Coral Hub Limited particularly at page 1822 of paper book and submitted the Coral Hub Limited digitization activity took a dip due to very unstable condition in Europe where most of the clients are based. The financial crisis over the past couple of years which is affecting Europe has weakened the financial strength of the publishers and cut in the budget by European Government especially for digitization of records has really put into a quagmire and look for a....
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....osmic Global Limited in engaged in providing translation services and also engaged in providing other IT enabled services including BPO services. Further, the growth by tapping the IT enabled translation services and earned the optimum profit and is trying to expand the customer base by their specialization in translation services and also pursuing other IT enable services such as BPO services and tries to establish a brand in the same field. Further, it was contended by the ld. AR that for A.Y. 2010-11 the same has been accepted by the TPO as comparable and for the present year the TPO by placing reliance in the case of Vodafone India Services Vs. DCIT [TS 95 ITAT 2013 (Mum) TP] which held that Cosmic Global Limited was mainly engaged in translation business in addition to medical transcription, accounts BPO and consultancy and it is not in the nature of IT enabled services and thereby rejected Cosmic Global Limited as not functionally comparable to the assessee. Before the TPO, the assessee contended that by taking reference to CTBT Circular No. 890(E) dated 26-09-2000 and submitted that the CBDT explained the medical transcription is IT enabled services. The DRP considering the ....
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.... incomplete and supported the discussion made by the TPO in its order at page 16. For medical transcription, training will be given by the Doctors and they are not at all engaged in medical transcription activity and the services of assessee are requires highly skilled personnel because it is engaged in designing. We note that the DRP having found the medical transcription services which represents IT enabled services treated the activities of Microgentics Systems Limited is functionally similar to the assessee and directed the TPO to include Microgentics Systems Limited as comparable in the final list of comparables. Thus, we find no infirmity in the order of DRP/AO. Accordingly, ground Nos. 5 and 6 raised by the Revenue are dismissed. 13. Ground No. 7 is general in nature, hence, requires no adjudication. 14. In the result, the appeal of Revenue is dismissed. CO No. 21/PUN/2018 15. Ground Nos. 1 and 2 raised by the assessee are general in nature, hence, require no adjudication. 16. In respect of Ground Nos. 3, 5, 8, 9, 10 and 11, the ld. AR submits that the assessee is not interested to prosecute the same and prayed to dismiss the same as not pressed. Accordingly, the Groun....
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....considered as a comparable to the assessee. 21. We find this Tribunal in the case of MACOM Technology Solutions (India) Private Limited Vs. DCIT in ITA No. 2831/PUN/2016 for A.Y. 2012- 13 vide order dated 09-05-2019 rejected Eclerx from comparable set based on functional dissimilarity. We find the present case is squarely similar to MACOM Technology Solutions (India) Private Limited (supra), wherein the assessee was engaged in similar design engineering services. For ready reference the relevant portion at para 16 is reproduced here-in-below: "16. We heard both the sides on this issue and perused the orders of the revenue authorities and the Paper Book filed before us. We also considered the judgemental laws placed before us. On hearing both the sides, we find the core issue for adjudication is that if company becomes a good comparable merely because the same is engaged in KPO activity like the assessee. We find, now it is decided at the level of the Hon'ble Delhi High Court that the similarity of functions/characteristic of services rendered by the assessee/comparables for identifying the good comparables assessee's importance. It is an undisputed fact, in the present case, tha....