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| The Tax Publishers2019 TaxPub(DT) 2408 (Del-Trib) : (2019) 071 ITR (Trib) 0259 INCOME TAX ACT, 1961
Section 92C
Certification Engineers International Ltd. was mainly involved in Government related services, further, it was a group concern of Engineers India Limited which was also involved mainly in performing Government related contracts, accordingly, it could not be considered as good comparable to assessee's case.
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Transfer pricing - Determination of ALP - Selection of comparables - Entity involved in government related services
Assessee rendered technical support (engineering design) services to its AE abroad. TPO considered Certification Engineers International Ltd. as comparable to assessee's case. Held: Certification Engineers International Ltd. was mainly involved in Government related services, further, it was a group concern of Engineers India Limited which was also involved mainly in performing Government related contracts, accordingly, it could not be considered as good comparable to assessee's case.
Supported:AT&T Communication Services India (P.) Ltd. v. Asstt. CIT (2018) 91 Taxmann.com 58 (Del-Trib) : 2018 TaxPub(DT) 1171 (Del-Trib), ITAT Bangalore in the case of KHF Components (P.) Ltd. v. ITO (2016) 71 taxmann.com 52 (Bang-Trib) and ITAT Delhi in the case of Bechtel India (P.) Ltd. v. Dy. CIT (2016) 66 taxmann.com 6 (Del-Trib) : 2016 TaxPub(DT) 0992 (Del-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 92C
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