The Tax Publishers2021 TaxPub(DT) 0905 (Bang-Trib)

INCOME TAX ACT, 1961

Section 92C

ICRA Techno Analytics Ltd. was engaged in a diverse range of IT Solution Services. The company was not a full-fledged software development company and provided such services among its other wide array of IT solution services like business analytics, IT Engineering and Business Process Outsourcing. Accordingly, the company was functionally different from assessee and there could be no comparability analysis.

Transfer pricing - Determination of ALP - Selection of comparables - Functional dissimilarity

Assessee rendered software development services to its AE abroad. TPO considered ICRA Techno Analytics Ltd. as comparable to assessee's case. Held: ICRA Techno Analytics Ltd. was engaged in a diverse range of IT Solution Services. The company was not a full-fledged software development company and provided such services among its other wide array of IT solution services like business analytics, IT Engineering and Business Process Outsourcing. Accordingly, the company was functionally different from assessee and there could be no comparability analysis.

Relied:Dy. CIT v. Electronics for Imaging India (P) Ltd. ((2016) 70 Taxmann.com 299 (Bang–Trib.) : 2016 TaxPub(DT) 3050 (Bang-Trib)), Asstt. CIT v. Broadcom India Research (P) Ltd. (2016) 72 Taxmann.com 77 (Bang-Trib.) : 2016 TaxPub(DT) 3615 (Bang-Trib) and ITO v. Interwoven Software Services (India) (P) Ltd. (2016) 74 Taxmann.com 103 (Bang-Trib.) : 2016 TaxPub(DT) 4505 (Bang-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11


INCOME TAX ACT, 1961

Section 92C

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