The Tax Publishers2020 TaxPub(DT) 1529 (Mum-Trib)

INCOME TAX ACT, 1961

Section 92C

Where comparable company selected by assessee qualified the turnover filter applied by the assessee; the range of turnover filter applied by the assessee being accepted by TPO, the said company was rightly included in the final list of comparables.

Transfer pricing - Computation of ALP - Selection of comparables -

Assessee-company was engaged in installation, assembling and maintenance of lifts and escalators. It selected four comparables to benchmark its transactions of purchase of stores and spares of lift and escalators from its AEs. TPO rejected one of the comparable company named 'S' from the list of comparables on the ground that the said company was having turnover less than Rs. 1 crore. Held: A perusal of the Directors Report of 'S' prima-facie revealed that the turnover of said company was more than Rs. 2 cores. Thus, the said company qualified turnover filter applied by assessee. It was pertinent to note that the range of turnover filter applied by the assessee was accepted by the TPO. Accordingly, the TPO was directed to include 'S' in the list of comparables.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 115JB

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