TaxTMI 
TaxTMI 
2023 (8) TMI 24
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....d by the assessee on unjustifiable grounds. B. By comparing the assessee with companies which have an entirely different functional and risk profile. C. By applying RPT filter as 25% of total turnover instead of 15% as applied by the assessee. D. By not making suitable adjustments to account for differences in the risk profile of the assessee vis-à-vis the comparable Companies. 2. The learned TPO erred by charging notional interest on delayed receipt and balance outstanding from Associated Enterprise which has resulted in a proposed addition of Rs. 23,26,382/-. Under this ground, we have the following specific objections: A. The learned TPO erred by charging notional interest on delayed receipt and closing balance outstanding from associated enterprises without any basis. B. The learned TPO erred by charging notional interest for the entire year under consideration irrespective of the date of receipt and credit period. In doing so, the learned TPO and learned Assessing officer erred by not following the directions of the Hon'ble Dispute Resolution Panel. 2. Facts of the case, in brief, are that the assessee company....
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.... 6. We have heard the rival arguments made by both the sides, perused the orders of the AO and the learned DRP and the Paper Book filed by the assessee. Admittedly, in the present case, the TPO has applied the export turnover filter of 75% as seen from the record. However, the assessee before us demonstrated that this company fails in the export turnover. In our view, it would be appropriate, if the TPO examine afresh and find out whether this comparable fulfills the export turnover filter or not. Needless to say that the above said exercise shall be carried out by the Assessing Officer / TPO after granting the opportunity of hearing to the assessee. 7. In the result, ground raised by the assessee for exclusion of Infosys BPO is allowed for statistical purposes. Capgemeni Business Services India Ltd: 8. The next comparable is Capgemeni Business Services Ltd. In this regard, our attention was drawn to the order passed by the DRP/TPO by the learned AR for the assessee. The basic argument of the learned AR is that this company is not comparable with the assessee as it fails on the RPT filter applied by the TPO. It is the submission of the learned AR that the related party t....
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....that the Informed Technologies India Ltd is deriving revenue only from the BPO ITES and therefore, it qualifies to be taken as a good comparable. He relied upon the decision of Hyundai India Motors (P) Ltd in this regard for the above said proposition. 12. Per contra, the learned DR relied upon the order passed by the lower authorities. 13. We have heard the rival arguments made by both the sides, perused the orders of the AO and the learned DRP and the Paper Book filed by the assessee in detail in the case of Informed Technologies India (P) Ltd. In our view, the grievance of non-consideration of the financials by the TPO are not available as the said financials have been examined by the DRP before which the assessee has preferred this appeal. Nonetheless, the short grievance before is that the Informed Technologies Ltd is deriving revenue from ITES business and is not deriving income from software development. In our view, this is a factual finding which required examination of facts by the lower authorities and therefore, we deem it proper to remand this issue of inclusion of Informed Technologies to the file of TPO with a direction to find out from the record, whether Info....
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....s well as by Jindal Intellicom Ltd. The lower authorities on examination has come to the conclusion that this company is not comparable with that of the assessee as it is into software development and is deriving revenue from call centre. However, the above said aspect has not been examined by the lower authorities. Therefore, we deem it appropriate to remand back this issue to the file of the TPO/Assessing Officer with a direction to examine the financials of the Jindal Intellicom Ltd and whether this comparable is with the assessee or not. Further, the TPO is directed to find out after using its power as available under the law whether this company is earning revenue from the software development services or not. 20. In the light of the above discussions, the TP ground raised by the assessee are decided. It is made it clear that the TPO shall include inclusion/exclusion after affording reasonable opportunity of being heard to the assessee and pass a speaking order considering the decisions of the Tribunal / Judicial High Courts in this regard. 21. The last ground raised before us is on interest delayed receivable. In this regard out attention was drawn to page 816 of the pa....
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....Information Jindal Intellicom Limited is a public limited company incorporated in India under the provisions of the Companies Act, 1956. It is subsidiary of Jindal ITF Limited, a company incorporated in India which in turn is a subsidiary of Jindal Saw Limited a company registered in india under Companies Act 1956. Jindal Saw Limited is listed with various stock exchanges including National Stock Exchange and Bombay Stock Exchange. Jindal Intellicom Limited is engaged in providing services of a Call Center in overseas and domestic market, export of call center services forming major part of its business activities 2. Basis of preparation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (IGAAP). The Company has prepared these financial statements to comply in all material respects with the applicable accounting standards and the provisions of the Companies Act, 1956. Accounting policies have been consistently applied. except where a newly issued Accounting Standard is initially adopted or a revision to an existing tandard requires a change in the ac....