TaxTMI 
TaxTMI 
2026 (3) TMI 1556
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....1) arising out of the order dated 26.11.2021 u/s 143(3) r.w.s 254 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by the NFAC, Delhi for AY: 2012-13. 2. Heard and perused the records. Assessee / appellant, Fieldcore India (earlier known as Granite Services International India Ltd.) was incorporated in India on February 15, 2005 as a wholly owned subsidiary of Fieldcore Service Solutions International LLC, USA. During the year, the Appellant was primarily engaged in providing technical support and payroll administrative services to its associated enterprises ('AEs).The Ld. TPO computed arm's length price under section 92CA(3) of the Act and made transfer pricing adjustment amounting to INR 3,97,61,547. Th....
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....of the functionally dissimilar comparable companies i.e. HSC India Limited and Mitcon Consultancy and Engineering Services Limited. However, ld. CIT(A) dismissing the contentions of the Appellant concluded that the Ld. TPO was justified in including HSC India Limited and Mitcon Consultancy and Engineering Services Limited as suitable comparables. Accordingly assessee is in appeal raising following grounds; 3. We have considered rival contentions and find that Ground no. 1 is a general ground. No specific averments have been made in respect of this ground. Similarly ground no. 3 and 4 are consequential. 4. Ground no. 2 with sub-grounds; The issue is if Ld. CIT(A) has erred in including HSC India Limited ("HSCC") and Mitcon Consultancy ....
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....his company is suitable comparable. The Ld. CIT confirmed the same by observing as follows; "It is observed that the TPO has scrupulously followed the directions of the Hon'ble IT AT and verified the annual accounts and checked the website of the company. The TPO has noted that the company has not received any grant or incentives from the Government during the year under consideration. Therefore, for all practical purposes, it remains as a normal company. It has not received any special treatment from the Government in terms of any grant etc. This fact is not disputed by the appellant. The TPO has observed from the website of this company that this company is functionally similar to the assessee and also passed all the filters.....
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....t from the annual report of HSCC that it has been exploring business opportunity abroad with help and support of Ministry of External Affairs which is not available to other players/Appellant in the market. 9. Assessee on the other hand during the year was engaged in providing technical support and payroll administrative services to its associated enterprises ('AEs). Thus HSCC is functionally quite dissimilar to Appellant as HSCC is engaged in providing consultancy services which includes Conceptual Studies & Management Consultancy, Engineering Studies, Facility Design, Project, Management, Procurement, Logistics & Installation and Information Technology etc.. There is substance in the contention of ld. Counsel that HSCC is engaged i....
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....ment of India would only be relevant factor while otherwise it is apparent that assessee company has to procure contracts from the open market or otherwise provide its services to it's AE only. While the comparable company, HSCC, has successfully got its contracts from the government agencies and is extending its services exclusively to state or central government entities in the upgrading the health sector with sponsorship of government schemes. We would like to observe that during the years HSCC may not have directly got subsidy or any financial assistance from the Central Government, as the sponsoring agency which has established this company but the matter of fact remains that government funding in the health sector ultimately reach the....
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....site of this company clearly show that this company is functionally similar to the assessee and also pass all the filters. Accordingly, this company is robust and suitable comparable. This was sustained by ld. CIT(A) by observing that TPO has duly followed the directions of the Tribunal and verified the RPT filter and segmental data. 14. Ld. Counsel has submitted it is clearly evident from the annual report of Mitcon that it provides services to Banking, Infrastructure, Textile, Biotechnology Sectors, vocational training division, E-schools and BT and Pharma sector. Mitcon provides to its clients, customized solutions including pre-investment services, pre-contract engineering, post contract project management, IT based Training courses ....