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| The Tax Publishers2020 TaxPub(DT) 5039 (Del-Trib) INCOME TAX ACT, 1961
Section 92C
Infosys Technologies Ltd. due to its significant turnover, asset base and expenditure on brand, could not be taken as suitable comparable to assessee's case.
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Transfer pricing - Determination of ALP - Selection of comparables - Dissimilarity between asset base, turnover and significant brand value
`Assessee rendered software development services to its AE abroad. TPO considered Infosys Technologies as comparable to assessee's case. Held: Software development division revenue of assessee was only Rs. 16.80 crores, whereas turnover of Infosys Technologies Ltd was Rs. 21,140 crores. Also asset base of assessee company was merely Rs. 42.7 crores, whereas asset base of Infosys Technologies Ltd was Rs. 4,188 crores. Further, assessee had not incurred any expenditure on brand, whereas Infosys had incurred an expenditure of Rs. 57 crores. In view of all this, Infosys Technologies could not be taken as suitable comparable to assessee's case.
Relied:CIT v. Pentair Water Private Limited and of honourable Delhi High Court in case of CIT v. Agnity India technologies Ltd in ITA number 1204/2011 dated 10-7-2013 : 2013 TaxPub(DT) 2693 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 92C
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