The Tax Publishers2020 TaxPub(DT) 5473 (Hyd-Trib)

INCOME TAX ACT, 1961

Section 92C

L and T Infotech Ltd. generated revenue from three clusters, namely, service cluster, industrials cluster and telecom cluster and also developed products like Unitrax, Accu RASI. The company had got high risk profile, intangibles and huge brand value unlike assessee-company. Also the company was having huge turnover of Rs. 3,613 crores, therefore, it could not be held to a valid comparable with that of assessee engaged in software development having turnover of Rs. 29 crores.

Transfer pricing - Determination of ALP - Selection of comparables - Huge turnover, brand value and intangibles, etc.

Assessee rendered software development services to its AE abroad. TPO considered L and T Infotech Ltd. as comparable to assessee's case. Held: L and T Infotech Ltd. generated revenue from three clusters namely service cluster, industrials cluster and telecom cluster and also developed products like Unitrax, Accu RASI. The company had got high risk profile, intangibles and huge brand value unlike assessee-company. Also the company was having huge turnover of Rs. 3,613 crores, therefore, it could not be held to a valid comparable with that of assessee engaged in software development having turnover of Rs. 29 crores.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14


INCOME TAX ACT, 1961

Section 92C

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