TaxTMI 
TaxTMI 
2021 (10) TMI 1382
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.... Hyderabad's assessment dt.29.02.2016 framed in furtherance to the Dispute Resolution Panel's (DRP-I) Bangalore's directions dt.29.02.2016 passed in case No. involving proceedings u/s.143(3) r.w.s. 92CA(4) r.w.s. 144C(13) of the Income Tax Act, 1961 ('the Act'). Heard both the parties. Case files perused. 2. We advert to the Revenue's appeal ITA 627/Hyd/2016, first of all raising the following substantive grounds : "1. Whether on the facts and circumstances of the case the Hon'ble DRP was justified in excluding Infosys BPO Ltd. on the grounds of high turnover which is contrary to Rule 10B(2) which prescribes comparability of international transactions with uncontrolled transactions with reference to funds performed, a....
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....urrent year it is not there." 3. The Revenue's foregoing first twin substantive grounds seek to revive the Transfer Pricing Officer's (TPO) action including M/s. Infosys BPO Limited as a comparable entity in the assessee's IT Enabled Services (ITES) segment in his section 92CA(3) order dt.8.1.2015. Learned CIT-DR's vehement contention before us that just because the foregoing entity M/s. Infosys BPO Limited is having high turn over does not ipso facto render it ineligible for inclusion in the array of comparables since we are dealing with service sector segment only. He quote hon'ble Delhi high court's decision in PCIT-2 Vs. M/s. CHRYS CAPITAL INVESMENT ADVISORS PVT LTD 376 ITR 183 (Del) and M/s. Society General Global Solution Centr....
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....that M/s. TCS E-Serve Limited also deserves to be included in the array of comparables. We note from a perusal of the DRP's directions in para 9 that although the learned panel had invoked in "CHRYS CAPITAL" (supra) whilst rejecting the assessee's turnover argument but it has thereafter recorded a finding of the fact that M/s. TCS E-serve Limited was engaged in the business of providing IT Enabled Services, BPO services primarily to the Citi Group Co. introduced globally and the transaction includes a broad spectrum of activity involving processing, collection, customer care and payment in relation to the services rendered by the said group to its corporate and retail clients. The said company was further found to have been provided tec....
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....business risk(s) in the IT Enabled Services segment whereas this assessee is a capital service provider only. We therefore reject learned CIT-DR's arguments quoting 33 taxman.com 107 (Mum) that bad debts are an operational item in light of the fact that the TPO's computation's annexure with his order; had erroneously included the bad debts in issue and uphold learned DRP's directions exclusion thereof as per the foregoing inconsistency in accounting practice. The Revenue fails in all of substantive grounds. So is the outcome of its main appeal ITA No.627/Hyd/2016. 7. Learned counsel's next stated at bar that the assessee's C.O. No.35/Hyd/2016 in Revenue's foregoing appeal is only supportive of the DRP's directions under challenge. We....
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....ssessee's objection No.10 in para 2.10 page 14 had clearly directed the Assessing Officer to grant depreciation @ 60% in view of the tribunal's findings in preceding assessment years. We therefore allow the assessee's instant substantive ground in principle and leave it open for the Assessing Officer to frame consequential computation as per law. 10. Next comes the assessee's additional ground that "without prejudice to ground No.3, the learned Assessing Officer erred in law and on facts in not allowing deduction u/s. 10A of the Act on expenditure towards software lincence fee disallowed in the assessment order of Rs.1,81,14,801/- relating to STPI unit of the company." The same is admitted being an alternate plea; without....