| |
| The Tax Publishers2019 TaxPub(DT) 8099 (Del-Trib) INCOME TAX ACT, 1961
Section 92C
As evident from financials of Wipro, on account of acquisition, Wipro had acquired customer related, market related and technology related intangibles without having any verification of intangibles between standalone and consolidated financials. Furthermore, financial statement, showed that Wipro had goodwill of Rs. 8.6 crores. Also, Wipro had huge turnover of Rs. 940 crores as against Rs. 142 crores of assessee, thus a giant company with huge brand value could not be considered as comparable to assessee's case.
|
Transfer pricing - Determination of ALP - Selection of comparables - Huge brand value, significant intangbiles and large corporate size
Assessee rendered IT enabled services to AE abroad. TPO considered Wipro Limited (BPO Segment) (Wipro) as comparable to assessee's case.Held: As evident from financials of Wipro, on account of acquisition, Wipro had acquired customer related, market related and technology related intangibles without having any verification of intangibles between standalone and consolidated financials. Furthermore, financial statement, showed that Wipro had goodwill of Rs. 8.6 crores. Also, Wipro had huge turnover of Rs. 940 crores as against Rs. 142 crores of assessee, thus a giant company with huge brand value could not be considered as comparable to assessee's case.
Followed:Avaya India Pvt. Ltd. ITA No. 532/2019 : 2019 TaxPub(DT) 5190 (Del-HC), Oracle (OFSS) BPO Services Pvt. Ltd. ITA No. 124/2018 : 2018 TaxPub(DT) 1030 (Del-HC) and H&S Software Development and Knowledge Management Centre Pvt. Ltd. New River Software Services Pvt. Ltd. ITA No. 924/2016 : 2017 TaxPub(DT) 4373 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08
INCOME TAX ACT, 1961
Section 92C
 SUBSCRIBE FOR FULL CONTENT
|