The Tax Publishers2021 TaxPub(DT) 0954 (Del-Trib)

INCOME TAX ACT, 1961

Section 92C

Eclerx Services Ltd. (Eclerx) was a Knowledge Process Outsourcing (KPO) company and was providing domain specific re-engineering experties in partnership with financial services firms to increase control and execute ongoing functions and therefore, it was not functionally comparable with BPO/ITES provider like assessee.

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

Assessee rendered IT enabled services to its AE abroad. TPO considered Eclerx Services Ltd. (Eclerx) as comparable to assessee's case. Held: Eclerx Services Ltd. (Eclerx) was a Knowledge Process Outsourcing (KPO) company and was providing domain specific re-engineering experties in partnership with financial services firms to increase control and execute ongoing functions. It was also providing consulting, business analysis and solution testing services which provide a broad suite of services that allows its clients to operate on day-to-day basis, including trade processing, reference data, accounting and finance and expense management activities. Similarly, under sales and marketing services segment, Eclerx provided web content management and merchandising execution, web analytics, social media moderation and analytics, search engine analytics and support, CRM platform support, lead generation, supply chain and channel analytics, price and catalogue competitive intelligence, etc. Therefore, it was not functionally comparable with BPO/ITES provider like assessee.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13


INCOME TAX ACT, 1961

Section 92C

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