TaxTMI 
TaxTMI 
2023 (4) TMI 675
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....e basis of comparables being functionally different without considering the fact that the comparables are pioneer in providing marketing services, advertisement services, internet based promotion of product etc which are the whole and soul of Market support service i.e. is the key service provided by the assessee." (2) " In the facts and circumstances of the case, the order of Ld. CIT(A) is perverse in directing the TPO to delete the following comparables i.e. Apitco Limited, DFHL Property Service Limited on the ground of absence of segmental data without considering the fact a mere mention of a segment in the service provided by the comparable company (which may or may not be there) does not indicate presence of segmental data. Further not considering the fact that application of TNMM does not call for rejection of a functionally similar comparable just on the fact that it does not have separate segmental data available." (3) "In the facts and circumstances of the case, the order of Ld. CIT(A) is perverse in deleting the Commission expense from the AMP expense without considering the fact that the expenses made toward the commission has a direct impact toward pen....
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....mits that each of the above grounds/subgrounds are independent and without prejudice to one another. 7. The appellant craves leave to add, alter, vary, omit, substitute or amend the above grounds of appeal , at any time before or at, the time of hearing, of the appeal, so as to enable the Income-tax Appel late Tribunal to decide the appeals according to law." 4. Karl Storz Endoscopy India Private Limited (Assessee) is a 100% subsidiary of Karl Storz GmbH & Co. KG. Germany ("Karl Storz Germany"). The Company is engaged in the import and trading of endoscopic instruments and providing after sales services to customers. 5. Assessee also provides marketing and service support to the existing dealer network of Karl Storz Germany in India. The marketing support provided by the Assesses primary encompasses sponsorship of seminars and conferences of prominent associations of the medical community and advertisement campaigns in the print media while service support pertains to warranty repair and exchange of damaged equipment sold by Karl Storz Germany's dealers in India. In return for the services rendered and significant expenses incurred by the Company on marketing, Karl S....
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....agement Consulting Services Ltd. 15.90% 2 ID C (India) Ltd. 10.33% 3 ICC International Agencies Ltd (Segmental) 36.45% 4 Indus Technical & Financial Consultants Ltd. 12.05% 5 Inhouse Productions Ltd (Segmental) -0.88% 6 Inmacs Management Services Ltd 50.35% 7 Priya International Ltd (Segmental) 4.32% 8 India Tourism Development Corporation Ltd. -13.78% 9 EDCIL (India) Ltd. 2.34% Arithmetic mean 13.01% 11. The TPO has rejected all comparables selected by the Assessee except I C R A Management Consulting Services Ltd. and IDC (India) Limited vide its order dated 28/01/2015. TPO conducted a fresh search on revised filters. As a result, TPO proposed a final set of 14 comparable with an average margin of 22.91%. However, TPO has left out IDC (India) Limited, which was accepted by the TPO as comparable. 12. The comparables selected by the TPO is as under: Sl. No. Company Name OP/OC 1 Concept communication Ltd. 4.73% 2 Crystal Hues Ltd. 11.69% 3 Apar Chematek Lubricants Ltd. 42.31% 4 Cyber Media Research Ltd. 10.60% 5 DH L Property Services Lt....
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....elaxation under second proviso of Section 92C. The adjustment proposed in segment of MSS gets reduced to Nil following the direction of Ld. CIT. 17. Aggrieved, the revenue filed appeal against the decision of the ld. CIT(A) directing the TPO to exclude the following comparables. The decision of the ld. CIT(A) and acceptance and rejection thereof by the Tribunal is tabulated as under alongwith the reasons: 1. Global Procurement Consultants Ltd. This company is promoted by Export-Import Bank of India in association with leading Indian Public Sector and Private Sector consultancy organization on the basis of public private partnership model that offers collective Indian experience and expertise through the provision of a range of advisory services with particular focus on Procurement. The company provides technical assistance in enhancing equality, transparency, efficiency and effectiveness or procurement and implementation service to help attain desired institutional and corporate objective. The expertise or this company is available to various sectors including power, water resources, transportation, industries etc. FAR not comparable. Hence, the decision of the ld. C....
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....echnical and economic studies, feasibility studies, micro enterprises management, skill developments, project management consulting, market and social research and asset reconstruction management services. No segment wise profitability data of these services is available. The TPO has considered this company as comparable at entity level. This is a tiny resemblance of some of the function performed by this company with the overall activities undertaken by the assessee. However, in absence of any segmental data, the company cannot be taken as comparable on an entity level. FAR not comparable. Hence, the decision of the ld. CIT(A) is accepted. ADDITION ON ACCOUNT OF AMP EXPENSES 18. The TPO bifurcated Advertizing & Market Promotion (AMP) expenses into routine and non-routine following the Bright Line Test (BLT) and held that the appellant was providing service to its AEs because its AMP expenses were excessive. The TPO applied a markup of 15% on the nonroutine expenditure of the appellant based on the PLR of the SBI. Thus, the TPO made an addition of account marketing intangibles developed by the appellant as a result of marketing expenditure on the basis of Bright Line Test ....