TaxTMI 
TaxTMI 
2024 (9) TMI 646
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....ndoned. The application shall stand disposed of. ITA 219/2023 1. The Principal Commissioner questions the correctness of the judgment rendered by the Income Tax Appellate Tribunal ['ITAT'] dated 30 July 2021 and has principally assailed the exclusion of Vishal Information Technologies Ltd. and Nucleus Net soft & GIS (India) Ltd. Dealing with the aforesaid two comparables and the justification for their exclusion, the ITAT has in terms of the impugned order rendered the following conclusions:- "7. We have heard both the parties and perused the material on record. As far as Vishal Information Technologies Ltd. is concerned, on the business mode, we find that the employee cost of this company is 47.39% as against 47.39% of the assessee as....
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....ia) (P.), 14 ITR (Trib.) 541 (Mumbai) and the Tribunal upheld the exclusion of Vishal Information Technologies Ltd. observing as under:- "48. Insofar as the cases of Tulsyan Technologies Limited and Vishal Information Technologies Limited are concerned, it is noticed from their annual accounts that these companies outsourced a considerable portion of their business. As the assessee carried out entire operations by itself, in our considered opinion, these two cases were rightly excluded. Coming to the cases of Cepha Imaging Private Limited and Asian Cerc Information Technology Ltd. (Seg.), we find that these companies are engaged in providing software development services as is evident from their annual reports available on pages 52 onward....
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....pense 43.29% 15. The export revenue of this company is at 67.32% which is less than 75%, compared to the assessee's 92.35 as can be seen from the following: Particulars Assessee (Amt. in Rs.) Comparable (Amt. in Rs.) Export revenues 29,73,183 3,70,99,448 Total IteS revenue 32,19,408 5,51,06,523 Data process charge/Total operating expense 92.35% 67.32% 16. Further there is no extra ordinary event of amalgamation in the case of assessee. But this company had extra ordinary events. The scheme of amalgamation was approved by the Bombay High Court on 22.2.2006 without appointed date 01.04.2005. The financial results of the transferor company have been incorporated as per the disclosure given by the company. The figures given in ....