TaxTMI 
TaxTMI 
2024 (12) TMI 390
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....Daniel India Pvt. Ltd. v. ACIT in respect of assessment year (AY) 2011-12. 2. The respondent (hereafter the Assessee) had preferred the aforementioned appeal against the final assessment order dated 29.01.2016 passed by the Assessing Officer (hereafter AO) under Section 143(3) read with Section 144C of the Income Tax Act, 1961 (hereafter the Act). The Assessee has preferred the said appeal assailing the transfer pricing adjustment as directed by the Transfer Pricing Officer (hereafter TPO) on the basis of which the Assessee's returned income was enhanced by Rs. 7,44,04,229/-. The Assessee is engaged in providing engineering and design services and is a subsidiary of a US Company named Fluor Corporation and Daniel International. 3. It ....
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....dia Ltd. 10.37 3 Cades Degitech Pvt. Ltd. 5.47 4 Kitco Ltd. 27.48 5 Mahindra Consulting Engineers Ltd. 30.92 6 Project and Development India Ltd. 39.32- 7 T C E Consulting Engineers Ltd. 29.29 AVERAGE 22.46" 7. Based on the benchmark analysis, the TPO directed enhancement of Rs. 10,05,97,632/-, on the Assessee's declared income. The Assessee filed its objections before the Dispute Resolution Panel (DRP). The objections raised by the Assessee, which are the subject matter in the present appeal, relate to the inclusion of the following four companies as comparables: Sl. No. Company Name 1 Kitco Ltd. 2 Mahindra Consulting Engineers Ltd. 3 Project and Dev....
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....tries Development Bank of India (SIDBI) is the prime shareholder with 49% shares of the company. Would KITCO successfully implemented projects like Cochin International Airport Ltd., Cochin Special Economic Zone, etc and is involved in implementing a multimodal Mobility Hub at Cochin all of which are first of its kind in the country in their own respect. KITCO successfully is stated to have completed Phase-l of CIAL Golf Course & Country Club and Ghallah Wentworth Golf Course at Muscat, Sultanate of Oman, thereby establishing itself in an area, which was considered to be the forte of European Consultants. The prestigious overseas assignments completed by KITCO include technical evaluation of electrical power distribution network at....
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.... be erroneous to compare companies with different functionalities as similar only on the ground that TNMM is a more tolerant method. 14. Insofar as the TCE Consulting Engineers Ltd. is concerned, the Tribunal accepted that the said company was providing high end technical services, which were also not comparable with the functions performed by the Assessee. The relevant extract of the learned ITAT's decision is set out below: "(III) TCE Consulting Engineers Ltd. Ld. TPO included this comparable into the final list, as it provides engineering and designs services to its customers. On the contrary Ld. Counsel submitted before us that it is not a fit comparable as it is functionally dissimilar. On the contrary Ld.....
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.... Development India Ltd: Ld. TPO included this comparable into the final list as it provides engineering and designs services to its customers. On the contrary Ld.Counsel submitted before us that it is not a fit comparable as it is functionally dissimilar. On the contrary Ld. CIT DR placed reliance upon the observations of Ld. TPO/DRP. We have perused submissions advanced by both sides in the light of records placed before us. Functional profile of this company, as submitted by assessee, and as per the annual report placed at page 396-479 of paper book is as under: Under engineering and consultancy division this company has played a vital role in development of fertiliser industries in India. It i....