2020 (9) TMI 286

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.... 1.0. "Adjustment/addition of Rs. 23,600,763/- on account of provision of back office support services to Associated Enterprises ("AE") : 1.1 The Hon'ble Dispute Resolution Panel ('DRP')I Ld. Assessing Officer ('AO')/Ld. Transfer Pricing Officer ('TPO') have erred on the facts of the case and in law in making an upward adjustment of Rs. 23,600,763/- to the total income of the Appellant by holding that the international transaction relating to back office support services provided by the Appellant to its AE is not at arm's length. 1.2 The Hon'ble DRPI Ld. AOI Ld. TPO erred in facts of the case and in law in disregarding the benchmarking analysis and comparable companies selected by th....

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....g penalty proceedings under section 271(1)(c) of the Act. 2.3. The Appellant craves leave to add, alter, amend, substitute and/or modify in any manner whatsoever the foregoing grounds of appeal at or before the hearing of the appeal." 3. The issue is raised against the transfer pricing adjustment made in the hands of the assessee. 4. Briefly in the facts of the case the assessee was engaged in the business of providing back office services to its Authorized Enterprises (in short "AE"). The assessee had entered into international transaction with its AE. The Assessing Officer made reference u/s 92CA(i) of the Act to determine the Arm's Length Price (in short "ALP") of the international transaction undertaken by the assessee. T....

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....h turnover of the said entity. The Ld.AR for the assessee pointed out that even during the year under consideration, the turnover of the assessee was Rs. 30.92 crores and the turnover of TCS e-Serve Ltd. was Rs. 1578 crores. Similarly, he pointed out that similar was the case of Infosys BPO Ltd., as the said concern also had brand value and high turnover. The total turnover of Infosys BPO Ltd. for the year was Rs. 1312 crores. The Ld.AR for the assessee further pointed out that all the other issues raised would become academic. 7. The Ld.DR for the Revenue placed reliance on the orders of the authorities below. 8. We have heard the rival contentions and perused the record. The assessee is subsidiary of Integreon Managed Solution (Maur....

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.... issue of exclusion of TCS e-Serve Ltd. from the final list of comparables on the ground of the said concern having both brand value and high turnover was agitated before the Tribunal (supra) in assessee's own case in Assessment Year 2011-12. The Tribunal in turn relied on the ratio laid down by the Delhi Bench of Tribunal in B.C. Management Services P.Ltd. 83 Taxmann.com 346. The relevant finding of the said case are reproduced by the Tribunal in para 14 and are being referred, but not being reproduced for the sake of brevity. It may further be pointed out that against the said order in B.C. Management Services P.Ltd.(supra), the Revenue filed an appeal before the Hon'ble High Court and the question of law raised was as under:- 1.....