TaxTMI 
TaxTMI 
2019 (11) TMI 1870
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....'AO') erred in concluding the assessment under Section 143(3) of the Income Tax Act, 1961 ("the Act") read with Section 144C(3)(a) of the Act, as follows :- 1. determining the arm's-length price of the Appellant's international transactions of provision of business support services at Rs. 103,50,58,324 instead of Rs. 89,76,90,729 as determined by the Appellant; 2. disregarding the Appellant's Transfer Pricing documentation and conducting his own comparability analysis which is not in accordance with the contemporaneous documentation requirement of the Indian TP regulations; 3. requiring financial data of only the current year (FY 2009-10) of the comparable companies to be used for benchmarking the Ap....
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....port services to AEs was held at arm's length. The learned Transfer Pricing Officer (TPO) rejected all the 9 comparables selected by the assessee and carried out fresh search strategy and chose the following 4 comparables :- Sr. No. Particulars Margin % 1 E4E Healthcare Ltd. 19.46% 2 Cosmic Global Ltd. 14.97% 3 Accentia Technologies Ltd. 43.06% 4 Infosys BPO Ltd. 31.20% Average 27.17% Accordingly, the TPO made an upward adjustment of Rs. 13,73,67,595/-. The learned CIT (A) confirmed the transfer pricing adjustment made by the TPO. Against this, assessee is in appeal before the Tribunal. 4. We have heard both the counsels and perused the records. The lear....
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....s held to be not comparable on account of intangibles, brand value and marketing intangibles. 6. As regards exclusion of Accentia Technologies Ltd., the learned counsel for the assessee submitted that this company has been amalgamated with the assessee w.e.f. 1st April, 2008. He further stated that the financials of the assessee are inclusive of figures of the amalgamating company and hence margin of this are affected on account of this extraordinary activity. Therefore, he submitted, it cannot be accepted as a comparable. He also pleaded that this company is providing license to customers with respect to software. That this company is also using third party as well as proprietary software and that the company has developed various softw....
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....luded on account of extraordinary activities and functional differences as engaged in software products. 8. As regards the reasons for inclusion of Omega Healthcare Management Services Pvt. Ltd., it was submitted that the TPO rejected this company on the basis that the financials are not available in the public domain. It is submitted that this company is functionally comparable to the assessee and has been so accepted by the TPO for assessment year 2009-10. 9. As regards the working capital adjustment, it has been submitted that assessee relies upon the decision of the Tribunal in assessee's own case for assessment year 2009-10, wherein the Tribunal has directed to grant working capital adjustment to the Assessing Officer/TPO observi....