TaxTMI 
TaxTMI 
2019 (1) TMI 2038
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....: i) Info Edge (India) Ltd. ii) Media Reserarch Users Council iii) MMTV LTD iv) Power Systems Operation Corpn. Ltd. v) TSR Darashaw." 3. "The appellant craves, leave or reserving the right to amend modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 3. Teijin India was incorporated in July 2006 as a wholly owned subsidiary of Teijin Limited, Japan ("Teijin Japan"). Teijin India is engaged in the provision of marketing support services to Teijin Japan and other Teijin Group companies, as required. The Assessee filed the return of income on 28 November 2011 declaring an income of Rs. 15,844,165 for the AY 2011-12. During the course of the assessment proceedings, the Ld. AO made a reference under section 92CA(3) to the Ld. TPO and in response to the notice issued by the Ld. TPO under section 92CA(2) of the Act, the information and documents (as prescribed under section 92D of the Act read with Rule 10D of the Rules) maintained by the Assessee were submitted to the Ld. TPO. TPO proposed adjustment vide order dated 28/01/2015 and the draft order dated 20/02/2015 was served on the assessee proposing upward adju....
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....t service stations for the same activity spread throughout the various geographical locations. The relevant extract from the annual report of the company is given below:- "Info Edge (India) incorporated in 1995, owns one of the leading job portals naukri.com. The company is a leading provider of various portals related to online recruitment, matrimonial, real estate and education classifieds and related services in India." "Company has a network of 67 offices spread across in 41 cities in India. Company also operates internationally through 2 offices in Dubai, 1 in Bahrain and 1 in Riyadh. These international offices are engaged in business of sales, marketing and payment collection activities of company's business division. The company has employee strength of 1,798 people. Info Edge (India) owns four subsidiaries namely Naukri Internet Services, Jeevansathi Internet Services, Info Edge (India) Mauritius and Allcheckdeals India. Business Recruitment- This division of company is involved in providing recruitment through portals namely naukri.com, firstnaukri.com, naukrigulf.com, brijj.com and Quadrangle-an executive search agency." Hence the comparable is a good comparabl....
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....* Export turnover filter has already been removed by this office. * Supernormal profit companies are also part and parcel of industry and cannot be rejected merely because they have earned high margins, unless peculiar economic circumstances are pointed out. In order to exclude the extreme result cases, there should either be a defect in comparability or exceptional conditions faced by such comparables. In the present case, the company is comparable to the Assessee and thus cannot be rejected merely on account of earning supernormal profits 5. Aptico Ltd. Functionally not comparable - Engaged in mainly providing environment management, technical consultancy, industrial and entrepreneurship development, training programmes, micro enterprise development, waste minimization and energy management services * As per page 27 of AR, main operations of Apitco ltd. are Micro Enterprises Development, Skill Development, Entrepreneurship Development, Tourism & Research Studies, Project related Services, Infrastructure, Planning & Development, Environment Management, Energy related Services, Cluster Development, Asset Reconstruction & Management Services. It is a good comparable. * Export....
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....the assessee company. The Ld. AR relied upon the decision of the Tribunal in case of Adobe Systems India Pvt. Ltd. Vs. ACIT (2015) ITA No. 6165 & 6287/Del/2015 order dated 6/7/2018. 7. We have heard both the parties and perused the material available on record. From the annual reports of each of the comparables contested by the Revenue it can be seen that comparables are functionally dissimilar to the assessee company. These comparables are considered in case of Adobe Systems India Pvt. Ltd. (supra) for the same Assessment Year 2011-12 and from the perusal of the Tribunal's order it can be seen that these comparables are functional different than assessee's company. The Tribunal held as under for each of the comparables for A.Y. 2011-12 regarding marketing support services: "25. We have considered the rival arguments made by both the sides and perused the material available on record. So far as MMTV Ltd. is concerned, the DRP excluded this company from the list of comparables on the ground that this is functionally different entity and does not make a good comparable to the assessee in MSS function. Further, the submission of the assessee that it has significant intangibles coul....
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.... directing the TPO to exclude this company as comparable from the market support services segment has observed as under:- "21. Regarding Infoedge India Pvt. ltd we are of the view that this company has been included by the TPO holding that it is functionally comparable. Assessee contended before the Ld. TPO as well as DRP that this company is functionally not comparable in view of it engaged in management of online portals and also has major sources of revenue as advertisement income. Both the lower authorities rejected the contention of the assessee. We have carefully considered the rival contentions. It is apparent that the comparable selected by TPO is engaged in online portal activities such as employment website, matrimonial website and its major revenue is advertisement and subscriptions. It has diversified services such as recruitment related, real estate related, matrimonial related services and owns significant Rolls Royce India Pvt. Ltd. Vs. DCIT ITA No. 6636/Del/2015 Assessment Year 2011-12 intangibles/websites such a naukri.com, 99 acre.com etc. Therefore, this company is functionally different as it is providing an advertisement space as well as online portal based ....