The Tax Publishers2021 TaxPub(DT) 4915 (Bang-Trib)

INCOME TAX ACT, 1961

Section 92C

Assessee did not object to inclusion of L&T Infotech Ltd. before TPO but objected to inclusion of this company before DRP. The DRP did not adjudicate the objection. In these circumstances, exclusion of this company from the list of comparable companies has to be examined by TPO and, therefore, issue was remanded to TPO.

Transfer pricing - Determination of ALP - Selection of comparables - Assessee sought exclusion before DRP but not before TPO

Assessee rendered software development services to its AE abroad. TPO considered. Larsen and Toubro InfotechLtd. as comparable to assessee's case. Exclusion of this company was sought by the assessee for the reasons that the turnover of the company was far in excess of that of the assessee's and that the same was engaged in product development and infrastructure management services for which segmental details were unavailable. DRP failed to adjudicate on the ground of the assessee seeking exclusion of this company. Held: Assessee did not object to inclusion of L&T Infotech Ltd. before TPO but objected to inclusion of this company before DRP. The DRP did not adjudicate the objection. In these circumstances, exclusion of this company from the list of comparable companies has to be examined by TPO and, therefore, issue was remanded to TPO.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2010-11


INCOME TAX ACT, 1961

Section 92C

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