AI Drafter 
TaxTMI 
TaxTMI 
2026 (4) TMI 1761
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....g grounds:- "1. "Whether on the fact and circumstances of the case and in law, the Ld. CIT(A) is erred in not appreciating the selection of functionally similar comparables Le. Excel Infoways Limited as that of the assessee and making the adjustment by the Ld.TPO based on the TNMM Method." 2. "Whether on the fact and circumstances of the case and in law, the Ld. CIT(A) is erred in not appreciating the exclusion of functionally dis-similar comparables ie. Jindal Intelicom Ltd as that of the assessee and making the adjustment by the Ld. TPO based on the TNMM Method." 3. "Whether on the fact and circumstances of the case and in law, the Ld. CIT(A) is erred by relying on the stand of the Hon'ble ITAT in assessee&#....
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....al position between the Assessee and the comparable companies, and 1.7. not allowing the risk adjustment to account for the differences in the risk profile between the Assessee and the comparable companies 1.8. not allowing the use of multiple year data of comparable companies, as prescribed under Rule 10B(4) of the Rules and determining the arm's length price on the basis of financial information for the FY 2011-12, which was unavailable in the public domain at the time of determination of the arm's-length price. The Assessee prays that the relief granted by the Ld. CIT(A) be granted and the adjustment made by the Ld. TPO/AO be deleted. 2. On the facts and in the circumstances of the case and in ....
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....ociate enterprise (AE). The AO made reference under Section 92CA (1) for computation of arm's length price (ALP). The Transfer Processing Officer (TPO) entered into reference for computation of ALP. During proceedings before him the TPO noted that in order to bench mark the transaction of business support service, the Assessee adopted Transactional and Margin Method (TNMM), however, the transaction of recovery was bench marked by adopting Comparable Uncontrollable Price (CUP) method. Following were the comparable entities adopted by the Assessee. Name of the Comparable Average adjusted NPI (OP/OC) Agricultural finance Corporation Ltd 3.33% Apitco Limited 27.17% Ma Foi management Consultants Limited 0.67% EQMS Indi....
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....ltiple year data as prescribed under Rule 10B(4). The Assessee also challenged the rejection of economic analysis undertaken by Assessee and for inclusion of comparable by TPO; the Assessee challenged the inclusion of Excel Infoways Limited and not including Jindal Intellicom Ltd. in final set of comparable as well as not allowing working capital adjustment and risk adjustment by TPO. 7. The Ld. CIT (A) after considering the order of TPO, submission of Assessee and the material placed before it excluded the Excel Infoways Ltd. and directed to include Jindal Intellicom Ltd. However, not allowed working capital adjustment. Thereby allowed part relief to the Assessee. While directing for exclusion of Excel Infoways Ltd. The Ld. CIT (A) reli....
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....d. in ITA No. 2152/Mum/2014 in AY 2011-12. On the basis of low cost employee as well as in case of GTS e- Services (P) Ltd. in ITA No.1231/M/2017 for inclusion of Jindal Intellicom Pvt. Ltd., the A.R. of the Assessee submits that this comparable was included by TPO in AY 2011-12 in Assessee's own case. There is no change in the financial and functions of this comparable in the year under consideration as well. The functional analysis of Jindal Intellicom Ltd. is filed at page No.221 of paper book. Segmental information of this comparable is available at page no. 238-240 of the paper book. 9. The Ld. AR for the Assessee further submits that in her cross objection, the Assessee has also raised a ground for working capital adjustment. On al....
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....in of Assessee would be within arm's length price (ALP). Therefore, we proceeded to consider the plea of Assessee for exclusion of Excel Infoways Ltd. We find that Coordinate Bench of Mumbai Tribunal in GTS e-Services (P.) Ltd. Vs ITO reported in [2019] 108 taxmann.com 604 (Mumbai), (Excel Infoways Ltd. was excluded by Tribunal on the ground that employee cost of this comparable is low. Further, in M Modal Global Services (P.) Ltd. [2019] 112 taxmann.com 67 (Mumbai), this comparable company was also excluded on the ground that it has fluctuating margin. Thus, considering the submission of Ld. AR of the Assessee and the decision of Coordinate Bench of the Tribunal, exclusion of Excel Infoways Ltd. is upheld. 13. So far as inclusion of Jin....