| The Tax Publishers2020 TaxPub(DT) 0777 (Bang-Trib) INCOME TAX ACT, 1961
Sedction 92C
Turnover of Infosys Ltd.was Rs. 44,431 crores, that of L&T Infotech Ltd. was Rs. 4,644 crores, Mindtree Ltd. Rs. 3,032 crores, Persistent Systems Ltd. Rs. 1,984 crores & Thirdware Solutions Ltd. Rs. 207 crores. Thus, turnover of these companies was 10 times greater than turnover of assessee which was only a sum of Rs. 19 crores. Hence, there could be no comparability analysis.
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Transfer pricing - Determination of ALP - Selection of comparables - Huge turnover
Assessee rendered software development services to AE abroad. TPO considered Infosys Ltd., L&T Infotech Ltd., Mindtree Ltd,. Persistent Systems Ltd. and Thirdware Solutions Ltd. as comparable to assessee's case. Held: Turnover of Infosys Ltd. ws Rs. 44,431 crores, that of L&T Infotech Ltd. was Rs. 4,644 crores, Mindtree Ltd. Rs. 3,032 crores, Persistent Systems Ltd. Rs. 1,984 crores & Thirdware Solutions Ltd. Rs. 207 crores. Thus, turnover of these companies was 10 times greater than turnover of assessee which was only a sum of Rs. 19 crores. Hence, there could be no comparability analysis.
Relied:Acusys Software (I) Pvt. Ltd. v. ITO [ITA No. 223/2017, Judg., dt. 14-8-2018].
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 92C
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