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The Tax Publishers Brunos Computer Solutions & Software (P) Ltd. v. DCIT [ITA No. 1486/Hyd/2014, dt. 29-4-2016] : 2016 TaxPub(DT) 2213 (Hyd-Trib) Company into software development with comparable into Software development and ITES are not same *Facts:* Assessee-company was into software development and additions were made based on TNMM method on transactions with its AEs. The DRP upheld the same. The plea of the assessee one comparable company picked by the TPO was into software development and ITES while assessee was only into software development. The same are not similar businesses. The exclusion of the same will mean the additions cannot stand due to +/- 5% band width application. Thus went in appeal: Held in favour of the assessee by remanding back to TPO to examine if only the software development segment existed for the comparable to benchmark on similar basis.

The Tax Publishers

Brunos Computer Solutions & Software (P) Ltd. v. DCIT [ITA No. 1486/Hyd/2014, dt. 29-4-2016] : 2016 TaxPub(DT) 2213 (Hyd-Trib)

Company into software development with comparable into Software development and ITES are not same

Facts:

Assessee-company was into software development and additions were made based on TNMM method on transactions with its AEs. The DRP upheld the same. The plea of the assessee one comparable company picked by the TPO was into software development and ITES while assessee was only into software development. The same are not similar businesses. The exclusion of the same will mean the additions cannot stand due to +/- 5% band width application. Thus went in appeal:

Held in favour of the assessee by remanding back to TPO to examine if only the software development segment existed for the comparable to benchmark on similar basis.