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| The Tax Publishers2019 TaxPub(DT) 8011 (Del-Trib) INCOME TAX ACT, 1961
Section 92C
Engineers India Ltd. (EIL) was engaged in consultancy and engineering products and turnkey projects with diversified areas of production, whereas assessee was a routine engineering design services provider. Also, EIL was into extensive Research and Development activities as against no R&D activities of assessee and EIL was having huge assets of Rs. 60 crores as against Rs. 17 lakhs of assessee, hence, there could not be comparability analysis.
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Transfer pricing - Determination of ALP - Selection of comparables - Functional dissimilarity and huge assets base
Assessee rendered design and engineering services along with supervisory support services and supply to equipment and materials to its AE. TPO consiedered Engineers India Ltd. (EIL) as comparable to assessee's case.Held: Engineers India Ltd. (EIL) was engaged as consultancy and engineering products and turnkey projects with diversified area of production, whereas assessee was a routine engineering design services provider. Also EIL was into extensive Research and Development activities as against no R&D activities of assessee and EIL was having huge assets of Rs. 60 crores as against Rs. 17 lakhs of assessee, hence, there could not be comparability analysis.
Relied:International SOS Service India (P) Ltd. v. Dy.CIT (2016) 67 Taxman.com 73 (Del-Trib) and Thyssen Krupp Industries (P) Ltd. v. Asstt. CIT (2013) 25 ITR (T) 243 (Mum-Trib) : 2013 TaxPub(DT) 1705 (Mum-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 92C
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