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| The Tax Publishers2021 TaxPub(DT) 1575 (Bang-Trib) : (2021) 088 ITR (Trib) 0135 INCOME TAX ACT, 1961
Section 92C
So long as data relating to financial year is available, it matters not, if financial year followed is different. Therefore, matter regarding comparability of R Systems International Limited was remanded to TPO. If data, relating to the financial year in which international transaction had been entered into, was directly available from annual accounts of that company, then company ought to be examined/considered for comparability.
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Transfer pricing - Determination of ALP - Selection of comparables - Exclusion on the ground of different financial year ending
Assessee rendered IT enabled services to its AE abroad. TPO considered R Systems International Limited. as not comparable to assessee's case on the ground that it followed calendar year, i.e., 1st January to 31st December for maintaining its annual account whereas accounting year of assessee was 1st April to 31st March. Held: So long as data relating to financial year is available, it matters not, if financial year followed is different. Therefore, matter regarding comparability of R Systems International Limited was remanded to TPO. If data, relating to the financial year in which international transaction had been entered into, was directly available from annual accounts of that company, then company ought to be examined/considered for comparability.
Relied:Indecomm Global Services India Pvt. Ltd. IT(TP)A Nos. 404 and 553/BANG/2015 & C.O. No. 123/BANG/2015 for the assessment year 2010-11 and vide Order, dated 13-2-2019.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 92C
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