TaxTMI 
TaxTMI 
2019 (10) TMI 1491
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....eral grounds, at the time of hearing, the Ld. A.R. restricted his arguments on the Transfer Pricing adjustment of Rs. 1,08,58,381/-. 3. The assessee is a 100% export oriented unit set up under the Software Technology Park of India Scheme framed by Government of India. The assessee is providing Software Development services to its Associated Enterprises (AE). Thus it is a captive service provider. During the year under consideration, the assessee has entered into following international transactions:- a. Income from Software development Services - Rs. 13,93,05,662 b. Software license fee received - Rs. 22,13,911 c. Purchase of Fixed Assets - Rs. 7,07,266 d. Reimbursement of Expenses -....
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....rating Systems (India) Pvt. Ltd. vs. DCIT (ITA No. 1231/Bang/2010), wherein the grouping of companies following Dun and Bradstreet's analysis was held to be proper. The coordinate bench also examined the contrary decisions rendered by other benches of Tribunal (including the decision rendered by Mumbai bench of Tribunal in the case of Willis Processing Services (I) (P) Ltd. (2013)(57 SOT 339), which was relied on by Ld. DRP) and held them to be per-incuriam as they ignored the decision rendered in the case of Genesis Integrating Systems (India) Pvt. Ltd. Finally, the Tribunal held in the case of Autodesk India (P) Ltd. (supra) that the application of turnover filter as per the ratio laid down in the case of Genesys Integrating Systems (....
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....t's analysis. Hence the assessee should be compared with the companies having turnover in the above said range as per the decision rendered by the co-ordinate bench in the case of Genesis Integrating Systems India P Ltd. (supra). Since the turnover of following companies are more than 200 crores, they are liable to be excluded under turnover filter:- (a) Infosys Ltd - 21,140 crores (b) Larsen & Toubro Infotech Ltd - 1,776.76 crores (c) Mindtree Ltd - 698.02 crores (d) Persistent Systems Ltd - 504.41 crores (e) Sasken Communication Technologies - 401.50 crores (f) Tata Elxsi (seg) - 336.94 crores Accordingly, we direct the AO/TPO to exclude above said companies. ....
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....f business analysis and business process outsourcing then the same cannot be regarded as functionally comparable with that of the assessee who is rendering software development services to its AE. 16. In view of the above facts, we do not find any error or illegality in the findings of the DRP that this company is functionally not comparable with that of a pure software development service provider." (b) KALS INFORMATION SYSTEMS Ltd. (Seg.) 23. We have heard Ld. D.R. as well as Ld. A.R. and considered the relevant material on record. The Ld. DR has not disputed the fact that comparability of this company has been examined by this Tribunal in a series of decision including in the case of Triology e-business Softwar....