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| The Tax Publishers2021 TaxPub(DT) 4570 (Del-Trib) INCOME TAX ACT, 1961
Section 92C
Thirdware Solutions Ltd., owned software products and earned income from sale of licenses and subscription. As per Schedule 14 to the Audited financial statements, the company had purchased software licenses amounting to Rs. 2.11 Crores. In annual report of the company, it was further stated that the company was engaged in trading and development of software. In view of this, the company could not be regarded as an appropriate comparable for benchmarking international transaction of provision of software services undertaken by assessee.
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Transfer pricing - Determination of ALP - Selection of comparables - Functional dissimilarity
Assessee rendered software development services to its AE abroad. TPO considered Thirdware Solutions Ltd. as comparable to assessee's case. Held: Thirdware Solutions Ltd., owned software products and earned income from sale of licenses and subscription. As per Schedule 14 to the Audited financial statements, the company had purchased software licenses amounting to Rs. 2.11 crores. In annual report of the company, it was further stated that the company was engaged in trading and development of software. In view of this, the company could not be regarded as an appropriate comparable for benchmarking international transaction of provision of software services undertaken by assessee.
Followed:Colt Technology Services India Pvt.Ltd. (ITA No.609/Del/2011)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-06
INCOME TAX ACT, 1961
Section 92C
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