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| The Tax Publishers2019 TaxPub(DT) 5190 (Del-HC) : (2019) 416 ITR 0638 : (2019) 310 CTR 0633 INCOME TAX ACT, 1961
Section 92C
Assets employed by TCS E-Serve International along with huge intangibles in the form of brand value were found to have a definite considerable effect on its PLI. These factors vitiated its comparability under FAR analysis with assessee, a capital service provider without much intangible and risks.
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Transfer pricing - Determination of ALP - Selection of comparables - Significant intangibles
Assessee rendered IT enabled services to its AE abroad. TPO considered TCS E-Seve International Limited. as comparable to assesse's case.Held: Assets employed by TCS E-Serve International along with huge intangibles in the form of brand value were found to have a definite considerable effect on its PLI. These factors vitiated its comparability under FAR analysis with assessee, a capital service provider without much intangible and risks.
REFERRED : Vertex Customer Services India (P) Ltd. v. Dy. CIT (2017) 88 Taxmann.com 286 (Del-Tri) : 2017 TaxPub(DT) 5596 (Del-Trib), Stryker Global Technology Centre (P) Ltd. v. Dy. CIT (2017) 87 Taxmann.com 43 (Del-Tri) : 2017 TaxPub(DT) 4548 (Del-Trib), Samsung Heavy Industries (P) Ltd. v. Dy. CIT (2017) 84 Taxmann.com 154 (Del-Tri) : 2017 TaxPub(DT) 3905 (Del-Trib), Equant Solutions India (P) Ltd. v. Dy. CIT (2016) 66 Taxmann.com 192 (Del-Trib) : 2016 TaxPub(DT) 2059 (Del-Trib) and CIT v. Agnity India Technologies Private Limited (2013) 36 Taxmann.com 289 (Del) : 2013 TaxPub(DT) 2693 (Del-HC),dated 5-8-2016 in ITA 417/2016 and Pr. CIT v. Actis Global Services (P) Ltd. (Dedl-HC).
FAVOUR : In assessee's favour.
A.Y. : 2010-11
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