2018 (4) TMI 2020

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.... a wholly owned subsidiary of SCM Micro Systems Group, UK Ltd. The ultimate holding company is SCM Micro Systems Inc, USA. The assessee is engaged in prototype design, development and related support activities based on technical specifications and product idea obtained from affiliates. During the year, it has undertaken software development services. The assessee adopted TNMM as the most appropriate method to arrive its ALP, adopting OP/TOI as the PLI. Though the TPO agreed on the MAM of the assessee's TP study, however, rejected it on various grounds, picked up 28 comparables which included 3 of the assessee's comparables, arrived the PLI at 27.96% as against assessee's PLI at 14.7%. Consequently, the TPO made an upward adjustment of Rs.&....

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....oftware product sales apart from rendering of software services and, therefore, is functionally different from the assessee. 3. Celestial Labs Ltd The Company was basically/admittedly in clinical research and manufacture of bio-products and other products, and, thus, it could not be compared with company mainly in the business of providing software development services. 4. E-Zest Solutions Ltd The Company is rendering product development services and high end technical services which come under the category of KPO services. Hence, the Company is not functionally comparable. 5. Flextronics Software Systems Ltd (Segment) Functionally different and reliance was placed on Hewlett-Packard (India) Globalsoft (P) Ltd. vs OCIT - [....

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....ment and product design services. The segmental details regarding the same is not available in the financial statements. 13. Quintegra Solutions Ltd The Company is engaged in the business of product engineering services. The company is also engaged in the Research & Development activities resulting in the creation of own intangibles and Intellectual Proprietary Rights (IPR) . 14. Tata Elxsi Ltd (Seg) The Company is engaged in the development of niche product and development services namely product design services, innovative design engineering and visual computing labs. 15. Thirdware Solutions Ltd The Company is engaged in the business of product development and earns revenue from sale of licenses and subscription. However....