TaxTMI 
TaxTMI 
2026 (9) TMI 123
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....f assessment order dated 30.04.2015 passed u/s 143(3) r.w.s. 144C(3) of the Act pertaining to Assessment Year 2011-12. 2. Brief facts of the case are that the assessee company was engaged in the business of export of information technology enable Business Process Services ("BPO") including IT Enable Delivery Solutions and back-office data operations and data processing to customers in financial services industry in the USA with significant focus on mortgage banking solutions. For the year under appeal, return of income was e-filed on 30.11.2011, declaring total income of INR 2,73,88,841/-. The case was taken up for scrutiny and since the assessee was having international transactions with its AE, a reference was made to Transfer Pricing ....
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....hallenged the action of ld. CIT(A) of excluding certain comparables which were included by the TPO. The revenue further challenged the action of ld. CIT(A) of including certain comparables which were excluded by the TPO while benchmarking the transactions for computing the ALP of ITeS BPO services and ITeS delivery solutions including back office operations and data process. We comparable which are excluded or included by ld. CIT(A) are elaborately discussed as under:- Informed Technologies India Ltd. 7. This comparable was selected by the assessee in its Transfer Pricing Study Report ("TPSR") which was excluded by TPO on the ground that rental income was not separately identified and segmental detail were not available. The claim of ....
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....clerx Services Ltd. has out-sourced most of its service to outsider where the assets deployed in the form of human resources, infrastructure and other intangible differ from the entity which operates from its own resources. Therefore, ld. CIT(A) directed to exclude the same. 11. Considering the overall facts and objections of the Revenue, we find that TPO has silent on the issue of outsourcing, therefore, this company cannot be held as comparable to the assessee who is mainly providing services through its own employees and had not outsourced the same. Accordingly, the order of ld. CIT(A) in excluding Eclerx Services Ltd. from the final set of comparable is hereby, upheld. TCS E Serve Ltd. & Infosys BPO Ltd. 12. These two comparabl....
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..../Del/2017, this company was excluded in the final set of comparable by the Tribunal. Since the facts remained the same, therefore, we find no error in the order of ld. CIT(A) in excluding this company from the final set of comparable. ICRA Techno Analytics Ltd. 15. It is observed that the assessee has included ICRA Techno Analytics Ltd. in the final set of comparable in its TPSR which was accepted by the TPO however, the TPO has further proposed to include ICRA Online Ltd. Thereafter considering the objections filed by the assessee, TPO finally excluded ICRA Online Ltd and select ICRA Techno Analytics Ltd. in the final set of comparable. However, inadvertently the assessee has challenged the inclusion of ICRA Online before the ld. CIT....
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....ction u/s 10A by hooding that amount is not earned out of the eligible undertakings. 20. It was the claim of the assessee that the assessee has its units located in Gurgaon and registered under software Technology Park India (STPI) and providing services to its customers in USA in financial service industries. The activities of assessee company are squarely covered under the definition of computer software as clarified by CBDT Notification No. S.O. 890(E) dated 26.09.2000. At the outset, it is observed that similar disallowance was made by making identical observations in preceding AYs wherein for the first time in AY 2006-07, the same was deleted by the Co-ordinate Bench in ITA No. 236/Del/2011 which order was further confirmed by the H....
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....centre services did not amount to export of software. The CIT (A) accepted the assessee's contention that software services were covered by virtue of Explanation 2 (b) to Section 10A. The CBDT's Notification No.890 (E) issued on 26.09.2000 expressly notifies call centres as activities covered by the Explanation. Having regard to these facts, the ITAT confirmed the order of the CIT (A). This Court has considered a similar issue in CIT v. Kiran Kapoor, 372 ITR 321 (Del.). Likewise in respect of the same assessee for the subsequent year AY 2007-08 the Court confirmed the view of the ITAT (ITA 91/2018, dated 29.01.2018). The Court is also cognizant of Section 10A, particularly Explanation 2, which in its material parti....