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| The Tax Publishers2021 TaxPub(DT) 0055 (Hyd-Trib) INCOME TAX ACT, 1961
Section 92C
Thirdware Solutions Ltd. was engaged in product development and earned revenue from sale of licences and subscription. However, segmental profit and loss accounts for software development services and product development were not given separately and accordingly, there could be no comparability analysis.
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Transfer pricing - Determination of ALP - Selection of comparables - Functional dissimilarity and lack of segmental data
Assessee rendered software development services to its AE abroad. TPO considered Thirdware Solution Ltd. as comparable to assessee's case. Held: Thirdware Solutions Ltd. was engaged in product development and earned revenue from sale of licences and subscription. However, segmental profit and loss accounts for software development services and product development were not given separately and accordingly, there could be no comparability analysis.
Followed:ITA Nos. 1196 & 1197/Hyd/2010 : 2014 TaxPub(DT) 0444 (Hyd-Trib), Intoto Software India Private Ltd. v. Asstt. CIT, ITA No. 464 & 608/Hyd/2014, Planet Online Private Limited v. Asstt. CIT [ITA No. 7280/Mum/2012, dated 27-7-2018] : 2020 TaxPub(DT) 14 (Mum-Trib), Dialogic Networks (India) Pvt. Ltd. v. Asstt. CIT and ITA Nos. 161 and 2307/Hyd/2018, dated 6-8-2019 : 2019 TaxPub(DT) 6529 (Hyd-Trib) and Infor (India) (P) Ltd. v. Asstt. CIT.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 92C
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