The Tax Publishers2021 TaxPub(DT) 0214 (Bang-Trib)

INCOME TAX ACT, 1961

Section 92C

Acropetal Technologies Ltd. engaged into development of computer products was not functionally comparable to assessee engaged in software development services.

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

Assessee rendered software development services to its AE abroad. TPO considered Acropetal Technologies Ltd. as comparable to assessee's case. Held: Acropetal Technologies Ltd. engaged into development of computer products was not functionally comparable to assessee.

Followed:Applied Materials India Pvt. Ltd. v. ACIT [IT(TP)A No. 17 & 39/Bang/2016], Electronics Imaging India (P) Ltd. v. Dy. CIT (2017) 85 Taxmann.com 124 (Bang-Trib) : 2017 TaxPub(DT) 4187 (Bang-Trib) and LG Soft India (P) Ltd. [IT(TP)A No. 52/Bang/2016 and IT(TP)A No. 97/Bang/2016, dated 5-8-2020].

REFERRED :

FAVOUR : In asssessee's favour.

A.Y. : 2011-12


INCOME TAX ACT, 1961

Section 92C

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