TaxTMI 
TaxTMI 
2023 (4) TMI 675
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....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 penetration of the market, brand promotion, creation and development of marketing intangibles which b....
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.... 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 Storz Germany pays commission to Assessee on sales made by existing dealer network of AE in India. The Company also provides post warranty repair and maintena....
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....roductions 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 Ltd. 14.86% 6 ICRA Management Consulting Services Ltd. 16.14% 7 Info Edge (India) Ltd. 45.53% 8 MMTV Ltd. 32.94% 9 Power System Operation Corporation Ltd. 22.52% 10 Quadrant Communications Ltd. 14.58% 11 Apitco Ltd. 25.17% 12 Global Procurement Consultants Ltd. 30.86% ....
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....rganization 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. CIT(A) is accepted. 2. Power System Operation CL The function of a grid maintenance company are completely different from a marketing company. The company is also not in to marketing of power. Even otherwise the marketing of power is an entirely different ball game as compared to marketing of other goods and services. The company is not comparable and should be excluded. FAR not comparable. Hence, the decision of the ld. CIT(A) is accepted. 3. MMTV Ltd. The company derived income from broadcasting and advertisements. This it is media for markets and is not engaged in marke....