2021 (6) TMI 1126

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....fter called 'the Act') in relation to the assessment year 2014-15. 2. The only issue raised in this appeal is against the transfer pricing addition of Rs.9,18,00,388/-. Briefly stated, the facts of the case are that the assessee is a wholly owned subsidiary of Automated Securities Clearance LLC, USA and is a part of SunGard group. The assessee is engaged in providing Information Technology Enabled Services (ITES) through its Shared Service Centre located in Pune. The assessee filed its return declaring total income of Rs.1,37,010/-. Certain international transactions were reported in Form No. 3CEB. The AO made a reference to the Transfer Pricing Officer (TPO) for determining the Arm's Length Price (ALP) of the international transactions.....

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.... is sine qua non to first understand the functional profile of the assessee under the transaction. There is no dispute as to the nature of business carried on by the assessee as the TPO has accepted in his show cause notice as reproduced at page 3 of his order that "the assessee is engaged in the business of IT enabled service (ITeS)". On a pertinent query, the ld. AR submitted that no formal agreement was entered into between the assessee and its Associated Enterprise (AE) for rendering the ITES. Such services were rendered pursuant to a Purchase order, a copy of which has been placed at page 1 of the paper book. This Purchase order is effective from 01-04-2012 and is valid till 31-03-2014, thereby covering the year under consideration. As....

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.... year for which the site is hosted." On going through the above, it is palpable that this company is engaged in software products as well, which fact gets further fortified from its balance sheet which shows the figure of inventory at Rs.782.79 lakh. Segmental information of this company has been given under Note 29.1 reading: "The Company operates in one business segment of providing publishing solutions viz., typesetting and data digitalization services and is considered to constitute a single segment in the context of primary segment reporting as prescribed by Accounting Standard 17 - Segment Reporting". Assimilating the afore-referred facts, it is amply borne out that MPS Limited is not only engaged in rendering ITES but is also into So....