| |
| The Tax Publishers2020 TaxPub(DT) 0014 (Mum-Trib) INCOME TAX ACT, 1961
Section 92C
Acropetal Technologies Ltd. had employee cost of only 7.48%. thus it failed employee cost filter. Further, it was dealing in software products and had inventory worth Rs. 1.1 crores, therefore, it could not be considered as functionally comparable to assessee engaged in software development services.
|
Transfer pricing - Determiantion of ALP - Selection of comparables - Failing of employee cost filter and functional dissimilarity
Assessee rendered software development services to AE abroad. TPO considered Acropetal Technologies Ltd. as comparable to assessee's case.Held: Acropetal Technologies Ltd. as comparables had employee cost of only 7.48%. thus it failed employee cost filter. Further, it was dealing in software products and had inventory worth Rs. 1.1 crores, therefore, it could not be considered as functionally comparable to assessee.
REFERRED : Ness Technologies (India) Private Limited v. Asstt. CIT (ITA 7016/MUM/2012) (Assessment Year 2008-09).
FAVOUR : In assessee's favour.
A.Y. : 2008-09
INCOME TAX ACT, 1961
Section 92C
 SUBSCRIBE FOR FULL CONTENT
|