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| The Tax Publishers2020 TaxPub(DT) 3495 (Mum-Trib) INCOME TAX ACT, 1961
Section 92C
TCS e-Service Ltd. mainly involved in transaction processing and technology services was functionally dissimilar to assessee-company engaged in ITES and hence, there could be no comparability analysis.
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Transfer pricing - Determination of ALP - Selection of comparables - Functional dissimilarity, brand value and intangibles
Assessee rendered IT-enabled accounting and financial services to its AE abroad TPO considered TCS e-Service Ltd. as comparable to assessee's case. Held: TCS e-Service Ltd. was mainly involved in transaction processing and technology services. It carried on business of providing technology service such software testing, verification and validation. it also developed a software such as transport management software and, therefore, functionally this company was dissimilar to assessee-company. it also owned huge intangible and uses of Tata brand, which had definitely benefited this company and hence, there could be no comparability analysis.
Followed:Goldman Sachs (India) Securities (P) Ltd. v. Asstt. CIT (2017) 78 Taxmann.com 142 (Mum-Trib.) for assessment year 2011-12 : 2017 TaxPub(DT) 766 (Mum-Trib) and Capita India (P) Ltd. v. Asstt. CIT [ITA No. 356/Mum/2016].
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 92C
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