The Tax Publishers2020 TaxPub(DT) 3329 (Mad-HC)

INCOME TAX ACT, 1961

Section 92C

Infosys BPO Limited having huge turnover and brand value and assuming all risks leading to higher profits, could not be accepted as comparable to captive ITES provider like assessee.

Transfer pricing - Determination of ALP - Selection of comparables - Huge turnover and brand value

Assessee rendered IT-enabled services to its AE abroad. TPO considered Infosys BPO Limited as comparable to assessee's case. Tribunal reversed this. Revenue challenged order of Tribunal by way of appeal before High Court. Held: Infosys BPO Limited having huge turnover and brand value and assuming all risks leading to higher profits, could not be accepted as comparable to captive ITES provider like assessee.

Supported by:Agilant Technologies (International) Pvt. Ltd. v. ACIT 2015 SCC OnLine P&H 10135 CIT v. M/s.Pentair Water India Pvt. Ltd. (2016) 381 ITR 216 (Bom) : 2015 TaxPub(DT) 5492 (Bom-HC) was also taken note of in PCIT v. Sanvih Info Group Private Limited (I.T. Appeal No. 420 of 2019 (Del.-HC), dated 16-5-2019) : 2019 TaxPub(DT) 3832 (Del-HC) Chry Capital Investment Advisors India (P.) Ltd., v. Deputy Commissioner of Income Tax, (2015) 376 ITR 183 (Del) : 2015 TaxPub(DT) 2181 (Del-HC)PCIT v. Symphony Marketing Solutions India Pvt. Ltd., (2020) 113 taxmann.com 77 (Delhi) : 2019 TaxPub(DT) 5296 (Del-HC) CIT v. Pentari Water India (P) Ltd., (2016) 69 taxmann.com 180 (Bom) CIT v. Agnity India Technologies (P.) Ltd., [ITA 1204/2011, dated 10-7-2013] : 2013 TaxPub(DT) 2693 (Del-HC) Principal Commissioner of Income Tax v. M/s. Obopay Mobile Technoloty India Private Ltd., (I.T.A. No. 586 of 2016, dated 23-7-2018) Commissioner of Income Tax-2, Pune v. Principal Global Services (P.) Ltd. (2018) 95 taxmann.com 315 (Bombay) : 2018 TaxPub(DT) 6081 (Bom-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2012-13


INCOME TAX ACT, 1961

Section 92C

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