TaxTMI 
TaxTMI 
2019 (5) TMI 1967
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....ppeal filed by Revenue and Cross Objection filed by assessee were heard together and are being disposed of by this consolidated order for the sake of convenience. 3. The Revenue in ITA No.666/PUN/2016 has raised the following grounds of appeal:- 1. Whether the DRP was right in law and on facts in excluding functionally comparable companies. 2. Whether the DRP was right in law and on facts in including companies which are not functionally comparable. 3. Whether the DRP was right in law and on facts in excluding functionally comparable companies on the ground of non availability of segmental data, when the entire range of activity of the comparable was in the field of software services. 4. Did the DRP fall into error in not appreciat....
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....inclusion of Silverline Technologies Ltd. in the final list of comparables. 7. The learned Authorized Representative for the assessee at the outset pointed out that in case inclusion of Maveric Systems Ltd. is allowed in the hands of assessee, then margins shown by assessee would be within +/- 5% of margins shown by the final list of comparables. He further pointed out that in case first issue of Maveric Systems Ltd. is allowed, then second issue raised by Revenue and the grounds of objection raised by assessee in CO would become academic in nature. Hence, we proceed to decide grounds of appeal No.1 to 3 first. 8. We have heard the rival contentions and perused the record. Briefly, in the facts of the case, the assessee was engaged in the....
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....stated in the Schedule to the Profit and Loss Account and Notes to Accounts. Such expenses relate to either projects for creation of infrastructure for the company or R&D activities and the said information could not be used to hold the said concern to be functionally different. 9. We find that the Tribunal in the case of ACIT Vs. M/s. MSC Software Corporation of India Pvt. Ltd. in ITA No.577/PUN/2015 and cross appeal in ITA No.592/PUN/2015, relating to assessment year 2010-11, order dated 24.10.2018 in para 14 had decided similar issue of functional comparability of Maveric Systems Ltd. to the concern engaged in providing software development services. After analyzing the functionality of said concern and in turn, relying on the other dec....