| |
| The Tax Publishers2019 TaxPub(DT) 3726 (Del-Trib) INCOME TAX ACT, 1961
Section 92C
Accelya Kale Solutions Ltd. was engaged in software package and service as available in public domain, whereas assessee was in e-learning modules and content writing. It had incurred huge R&D expenditure, whereas assessee had not incurred any such expenditure. Further, it was a full risk bearing company, whereas assessee was a captive service provider to its AE with zero risk, hence, there could be no comparability analysis.
|
Transfer pricing - Determination of ALP - Selection of comparables - Functional dissimilarity
Assessee, provided customized e-learning modules and IT enabled service to its AE abroad. TPO considered. Accelya Kale Solutions Ltd. as comparable to assessee's case. Held: Accelya Kale Solutions Ltd. was engaged in software package and service as available in public domain, whereas assessee was in e-learning modules and content writing. It had incurred huge R&D expenditure whereas assessee had not incurred any such expenditure. Further, it was a full risk bearing company, whereas assessee was a captive service provider to its AE with zero risk, hence, there could be no comparability analysis.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 92C
 SUBSCRIBE FOR FULL CONTENT
|