The Tax Publishers2021 TaxPub(DT) 5895 (Bang-Trib)

INCOME TAX ACT, 1961

Section 92C

Turnover of assessee company durng the year was Rs. 94.5 crores and hence it fell under the category of companies having turnover in the range of one crore rupees to Rs. 200 crores. However, turnover of Larsen and Toubro Infotech Ltd. Mndtree Ltd. (SEG), and Persistent Systems Ltd. was more than Rs. 200 crores. Therefore, said companies could not be regarded as comparables with assessee having turnover of less than Rs. 200 crores.

Transfer pricing - Determination of ALP - Selection of comparables - Turnover filter

Assessee rendered software development services to its AE abroad. TPO considered Larsen and Toubro Infotech Ltd. Mindtree Ltd., (SEG.), and Persistent Systems Ltd. as comparables to assessee's case. Held: Turnover of assessee company durng the year was Rs. 94.5 crores and hence it fell under the category of companies having turnover in the range of One crore rupees to Rs. 200 crores. However, turnover of Larsen and Toubro Infotech Ltd. Mndtree Ltd., (SEG), and Persistent Systems Ltd. was more than Rs. 200 crores. Therefore, said companies could not be regarded as comparables with assessee having turnover of less than Rs. 200 crores.

Followed:Evolving Systems Network (I) (P) Ltd. v. Asstt. CIT (2021) 130 Taxman.com 212 (Bang-Trib) : 2021 TaxPub(DT) 3816 (Bang-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :


INCOME TAX ACT, 1961

Section 10AA

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com