TaxTMI 
TaxTMI 
2021 (9) TMI 1546
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..... We find that assessee company is engaged in the business of providing Information Technology Enabled Services (ITES) call centre operations. The assessee is a 100% subsidiary of HWP Investment Holding (India) Ltd., and provides voice based customer contact centre services (ITES) to Hutchison 3G Australia Pty Ltd., and Hutchison 3G UK Ltd., (Associated Enterprises-AEs). The ITES services rendered by assessee are mainly in relation to handling services related queries, dealer related queries, mobile number portability related queries, handset related queries, network related queries and price plan related services. The assessee characterized the transaction in respect of provision of ITES services to its AE as a low risk service provider. The international transactions reported by the assessee are as under:- Provision of IT enabled services to AEs - Rs.494,17,50,027/- Reimbursement of cost - Rs. 1,73,50,898/- Total Rs.495,91,00,925/- =============== 3.2. The assessee benchmarked its international transactions by adopting Transaction Net Margin Method (TNMM); by adopting Profit Level Indicator (PLI) as Operating Profit / Total Cost (OP/TC); taking assessee as....
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....cost 599.91 4 Price Received 484.17 5 Shortfall being adjustment u/s. 92CA 105.74 3.6. Pursuant to the directions of the ld. DRP, the ld. AO in the final assessment order determined the transfer pricing adjustment figure at Rs.105,74,53,035/- which is nothing but the addition made in the draft assessment order. 4. Aggrieved by this, the assessee is in appeal before us. 5. The ld. AR before us stated that though the assessee has raised several grounds, it would be sufficient if inclusion or exclusion of comparables alone are adjudicated. He specifically drew our attention that out of eight comparables finally chosen by the ld. TPO, the following six comparables were directed to be excluded by this Tribunal in assessee's own case for A.Y. 2008-09 in ITA No. 7520/Mum/212 dated 23/01/2019 :- Sr. No. Name of the comparable company 1. Aditya Birla Minacs Worldwide Ltd., 2. Acropetal TechnologoesLtd., 3. Coral Hubs Ltd., 4. Cosmic Global Ltd., 5. Eclerx Services Ltd., 6. Genesys International Corporation Ltd., 5.1. If these six comparables are excluded by following the Tribunal order in assessee's own case for A.Y.....
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....m translation business which is functionally not comparable with the services provided by the assessee company. v) Eclerx Services Ltd.,- This company is data analytics knowledge process outsourcing service provider which is different from BPO services provided by the assessee company. vi) Genesys International Corporation Ltd., - This company is a specialised geospatial service provider which is different from regular BPO services provided by the assessee company. 6.1. Hence, respectfully following the Tribunal order in assessee's own case for A.Y. 2008-09, wherein the aforesaid six comparables were held to be functionally not comparable, we direct the ld. TPO to exclude these six comparables from the final list of comparables while benchmarking the international transaction of the assessee. 6.2. We find that the assessee had derived foreign exchange fluctuation gains of Rs.13,31,38,000/- only on re-statement of outstanding debtors as on the balance sheet date. This, in our considered opinion, would certainly form part of only operating revenue of the company. Reliance in this regard has been rightly placed by the ld. AR on the Co-ordinate bench decision of....
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....stoms on behalf of the assessee for a sum of Rs.56,63,000/-. The assessee pleaded that the fixed deposits were placed with the bank as part of business purposes of the undertaking of the assessee and out of business receipts and consequently, eligible for deduction u/s. 10A of the Act. The ld. AO however, held that these fixed deposits were placed by the assessee out of surplus funds lying with it and hence, the interest earned thereon would be liable to be separately taxed under the head "income from other sources" and consequently not eligible for deduction u/s. 10A of the Act. This action was upheld by the ld. DRP. 7.2. We find that similar issue had cropped up in assessee's own case before this Tribunal in A.Y. 2011-12 in ITA No.766/Mum/2016 dated 30/06/2021 wherein this Tribunal treated the said interest income as part of business receipts earned by the assessee by placing reliance on the decision of Full Bench of the Hon'ble Karnataka High Court in the case of CIT vs. Hewlett Packard Global Soft Ltd., reported in 403 ITR 453; decision of the Hon'ble Jurisdictional High Court in the case of Cybertech Systems & Software vs. DCIT reported in 91 Taxmann.com 407(Bom), wherein i....
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....DRP. 8.2. We find that this issue is also no longer res-integra in view of the decision of this Tribunal in assessee's own case for A.Y. 2011-12 in ITA No.766/Mum/2016 dated 30/06/2021 wherein it was held that the action of the lower authorities in placing reliance on the decision of the Hon'ble Jurisdictional High Court in the case of CIT vs. Shah Originals reported in 327 ITR 19 (Bom) was totally misconceived as the said decision was rendered in the context of deduction claimed u/s. 80HHC of the Act whereas in the present case, the assessee has claimed deduction u/s. 10A of the Act, wherein deduction is available on the profits derived by the assessee on the entire profits and gains derived by the undertaking engaged in the business of export of articles or things. This Tribunal had also placed reliance on the decision of the Hon'ble Karnataka High Court in the case of CIT vs, Motorola India Electronics Pvt. Ltd., reported in 46 Taxmann.com 167 wherein it was held that what is exempted is not merely the profits and gains of the export of articles but also the income from the business of the undertaking. Proceeding further, the Hon'ble High Court also observed that export profi....