TaxTMI 
TaxTMI 
2022 (9) TMI 1711
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....o. 4/Chny/2018 [Assessment Year 2006-07]: 2. Facts are, in brief, that the assessee company is engaged in the business of providing logistics and business support services to its group companies. It is a second round of litigation. The assessee filed its return of income for the assessment year 2006-07 by declaring total income of 15,86,130/-. The return filed by the assessee was processed under section 143(1) of the Act. Subsequently, a survey under section 133A of the Act was conducted at the business premises of the assessee on 14.03.2013. Subsequently, a notice under section 148 of the Act dated 30.03.2013 was issued to the assessee and the case was reopened under section 147 of the Act. The case was referred to the Transfer Pricing Officer (TPO under section 92CA(1) and order under section 92CA(3) of the Act was passed on 07.05.2014 proposing an adjustment of Rs..30,59,033/-. Draft assessment order was passed on 26.02.2015 incorporating the order of the TPO, consequently making an adjustment of Rs..30,59,033/- and making a disallowance of depreciation on lease hold property to the tune of Rs..1,08,825/-, thereby, the total income of the assessee has been assessed at Rs....
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....rmined the applicant. 1.2 The submission of the assessee objecting the action of TPO to select three additional comparables has been considered. The assessee has selected three comparables which have been accepted by the TPO. Further, TPO carried out search and from accept / reject matrix selected three more comparables which are appropriate considering the business of the assessee as under: i. Adecco Peopleone lndia Pvt Ltd ii. Alliance Comnet Ltd iii. Genius India TPA Ltd The assessee's objection that the above three additional comparables are not functionally similar to the assessee has been considered by the TPO and the detailed functional analysis for these comparables has been done. The functional analysis of all 6 comparables are given in Page 12 & 13 of the TP order. It is found that the functions performed by the comparables selected by the assessee and that selected by the TPO are not much different. Considering that the comparability study is being done with TNMM as MAM, the assessee cannot really object on this ground in face of no apparent functional dissimilarities. During the course of hearing, the AR of the assessee w....
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.... logistics of the clients and providing solutions to various organizations as assessee is rendering such services to its group concerns in Hong Kong and British Virgin Islands. Further, Ld. DR submitted that the order of the DRP has gone into the analysis of these functions and their comparabilities before they are ignoring the differences as 'not much difference' (para 1.2 of the DRP's directions extracted above). In connection with the second comparable i.e. Alliance, counting to the arguments of the Ld. Counsel for the assessee, Ld. DR submitted that the said news item in the print media (Economic Times) does not give any conclusive functional status of the company as it is a stray report in connection with some default qua the petition before the Consumer Court. 12. On considering both the points of view, we find the order of the DRP with regard to the correctness of the inclusion of these two comparables is not to be considered as a speaking order as there is no reference to the details of the functions of these two companies in the said para 1.2 of the DRP's directions. None of the parties have filed annual reports, TP study reports, financials even b....
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....co. In this regard it is seen that assessee itself selected three comparable namely. 1. Cameo Corp. Services Ltd 2. Cyber media Research Ltd 3. ICRA Management Consulting Ltd The above comparables identified by the assessee are into BPO services. Document management, Medical transcription, advisory services, IT, ITES, Telecom, Management consultancy, Research & Analytics, Transaction advisory etc. Though they encompass very diverse functions, both assessee and TPO both agreed on the broader pedestal that they are comparable. Drawing similar line of comparability Adecco functions in HR staffing is similar to the logistic and business support services where the services of people are primarily engaged. Hence, this Panel is of the view that Adecco is rightly included by the TPO and there is not enough justification presented by the assessee for it is exclusion. Ground rejected. 2. Alliance Comnet Ltd: The assessee failed to provide information justifying the exclusion. The TPO has agreed that this company is engaged in BPO services and also into document management. Medical transcription, Data conversion, Registry and Share transfe....
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....th Price. I.T.A. No. 2407/Chny/2017 [Assessment Year 2008-09]: 9. So far as assessment year 2008-09 is concerned, the only issue involved in this appeal is in respect of elimination of one of the comparables selected by the TPO i.e., M/s. Killick Agencies & Marketing Ltd. The case of the assessee before the TPO/Assessing Officer is that M/s. Killick Agencies & Marketing Ltd., one of the comparables chose by the TPO is not functionally comparable and submitted that the same may be eliminated from the comparables selected by the TPO. However, the TPO as well as ld. DRP have rejected. The observations of the ld.DRP are as under: "3.2 The submissions of the assessee have duly been considered. The Financials of Killick Agencies and Marketing Ltd. mentions that the company receives commission income from overseas parties in relation to sales of dredging equipments, maritime and aviation lighting, acoustic communication equipments, etc. The company also provides after sale services. The assessee company is engaged in providing sourcing assistance, logistic support, sales support services and accounting services to its parent company. As per the TP document of the asses....