TaxTMI 
TaxTMI 
2019 (8) TMI 1725
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....nds raised. 2. First issue pertains to transfer pricing adjustment in respect of provision for corporate support services to Associated Enterprises (AEs) amounting to Rs. 1,07,31,614/-. 3. Second issue raised is transfer pricing adjustment in respect of research and development services to AEs amounting to Rs. 32,14,036/-. 4. Brief facts of the case are that the assessee company is engaged in the business of developing, manufacturing, trading, distribution and supplying of innovative specialty chemicals. It is a subsidiary of the Ashland group. The assessee has undertaken various international transactions with its AEs but the TPO has only made adjustment for 'provision of corporate support services' (ITeS) and provision for 'resea....
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....rating cost (in Crores) 9,56,18,773 Operating revenue of the assessee @ 15% 10,99,61,589 ALP margin @ 25.59% 12,00,87,617 Difference 1,01,26,028 In view of the above, the adjustment of Rs. 1,01,26,028/- is made to this transaction. 6. Against the above, the assessee submitted its objection before learned DRP and finally post DRP direction, following comparables were selected :- (i) Excel Infoways Ltd. : 42.25% (ii) Jindal Intellicom : 15.91% (iii) BNR Udyog Ltd. : 24.99% (Average 26.22%) 7. Now against the above order, assessee is in appeal before us. 8. We have heard both the counsel and perused the records. Learned Counsel of the assessee contended that the comparables R....
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....T reported in [2019] 101 taxmann.com 41 (Mum-Trib) for the Assessment Year 2013-14- • PangeaS & Legal Database Systems (P.) Ltd. v/s. ITO reported in [2017] 79 taxmann.com 303 (Mumbai- Trib.) for the Assessment Year 2009-10 • Maersk Global Service Centre India Private Limited v/s. ACIT reported in [2018] 100 taxmann.com 435 (Mum-Trib) for the Assessment Year 2012-13. • CIT v/s. Mercer Consulting India P. Ltd. reported in [2017] 390 ITR 615 (Punjab & Haryana) for the Assessment Year 2008-09 10. Learned counsel submitted that upon extrapolating details of quarterly result margin of the said company comes to 14.64%. Accordingly, learned counsel prayed that the issue may be remanded back to the TPO with....
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....That there is no separate segment for ITeS. That the company has diversified into new areas such as construction and development of property. Learned Counsel of the assessee referred to following case laws wherein, Excel Infoways has been excluded as comparable :- • Baxter India Private Limited, v/s. ACIT reported in [2017] 85 taxmann.com 285 (Delhi Trib) for the Assessment Year 2012-13 • Clear Info Analytics Private Limited v/s. ACIT (ITA No.2299/MUM/2017) for the Assessment Year 2012-13 • Emerson Climate Technologies (India) Private Limited reported in [2018] 100 taxmann.com 478 (Pune-Trib) for the Assessment Year 2013-14 14. Upon careful consideration, as regards the plea of learned counsel of th....
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.... such as construction and development of property. These distinguishing features show that this entity is not a good comparable in the present case. This proposition is also supported by the case laws referred by learned counsel as above. 17. Accordingly, as regards the issue of corporate support services, we accede to the request of the learned Counsel of the assessee and direct that R. Systems International Ltd. be included as comparable in terms of our direction as above and Excel Infoways Ltd. should be rejected. 18. Learned TPO shall accordingly make computation afresh after giving the assessee proper opportunity of being heard. Apropos - Transfer pricing adjustment in respect of research and development. 19. In this regard, a....
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....at in following case laws, it has been held that Syngene has two streams of income viz. from contract research fees and sale of compounds, however segmental analysis is not available in the annual report and hence is functionally not comparable. In this regard learned counsel submitted following details of case laws :- • Pfizer Limited v/s. ACIT reported in [2015] 64 taxmann.com 465 (MumbaiTribunal) for the Assessment Year 2003-04 (refer para No. 48 to 52 on page No. 11 of the Order) upheld by jurisdictional. • Bombay High Court in ITA No. 1731 of 2016 (refer para 10 on Page 8 of the Order). • Evonik Degussa India Private Ltd. v/s. ACIT reported in [2012] 28 taxmann.com 285 (Mumbai-Tribunal) for the As....