Transfer Pricing: Five Companies Excluded as Non-Comparable for Captive Software Services, Three Retained, Two Added

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....The ITAT partially allowed the taxpayer's appeal concerning comparable selection for transfer pricing adjustments. The Tribunal excluded Tata Elxsi Limited (significant intangibles owner), Persistent Systems Limited (diversified activities), Infosys Limited (brand value, R&D expenditure), Mindtree Limited (excessive onsite revenue), and Akshay Software Technologies Limited (ERP implementation services) as non-comparable to the assessee's captive software development services. However, the ITAT retained Larsen & Toubro Infotech Limited, Infobeans Technologies Limited, and Cybage Software Private Limited as valid comparables, rejecting the assessee's functional dissimilarity arguments. The Tribunal directed inclusion of Maveric Systems Limited and Harbinger Systems Pvt. Limited, finding them functionally similar despite R&D expenditure or database availability concerns.....