2023 (10) TMI 561

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.... law is framed for consideration: (i) Whether the Income Tax Appellate Tribunal [in short, "Tribunal"] has misdirected itself on facts and in law in excluding the comparable Onward Technologies Limited [in short, "OTL"] while benchmarking the engineering, technical and inspection segment, in the course of exercising its powers under Section 254 of the Income Tax Act, 1961 [in short, "Act"]?" 3. With the consent of the counsel for the parties, the appeal is taken up for final hearing and disposal, at this stage itself. 4. Briefly, the record shows that the Transfer Pricing Officer (TPO) had accepted OTL as a comparable, which was embedded in the appellant/assessee's transfer pricing study report. 4.1 The record also shows t....

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....see are very different from this comparable. The Id. CIT(A) has also erred in ignoring that fact that the assessee had admitted that this comparable is broadly engaged in the similar business of technical consultancy and engineering services deriving revenue worth 57% from the consultancy segment. (ii) The Ld. CIT(A) has erred in concluding that the comparable namely. M/s L&T Rambo// Consulting Engineers Ltd. is fact that the revenue of this comparable for F.Y. 2008-09 is from Engineering Services Consultancy only, as per the available financials and the annual report of this comparable. (iii) The Ld. CIT(A) should have also removed the comparable namely M/s. Onward Technology Ltd as this comparable can also be considered ....

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.... following as regards the TPO's observation qua the exclusion of OTL as a comparable: "The professional and consultancy segment can be used as comparable." 12. Clearly, even according to Mr Chawla, the TPO had accepted the comparable OTL. 13. A perusal of the impugned order shows that the Tribunal has only recorded the contentions of both sides and perhaps, proceeded based on incorrect facts. The comparable OTL, according to the counsel for the parties, was indeed included in the Transfer Pricing Study Report. It is also not in dispute that the TPO had accepted OTL as a comparable. The Tribunal, in our view, without discussing the scope and ambit of its power under Section 254, has proceeded to issue operative directions, whi....