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| The Tax Publishers2020 TaxPub(DT) 1780 (Bang-Trib) INCOME TAX ACT, 1961
Section 92C
Persystent Systems Limited was engaged in running software development services as well as sale of software products. Albeit percentage of software products in total revenue was less, as had been noted by TPO, there was no precise information about contribution made by such small sale of software products to the total profits of the company. As no segmental information was available and also Persistent Systems Limited was having intangibles to the tune of 240 million it was not comparable to assessee's case.
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Transfer pricing - Determination of ALP - Selection of comparables - No segmental data
Assessee rendered software development services to Ae abroad. TPO considered Persistent System Limited as comparable to assessee's case.Held: Persystent Systems Limited was engaged in running software development services as well as sale of software products. Albeit percentage of software products in total revenue was less, as had been noted by TPO, there was no precise information about contribution made by such small sale of software products to total profits of the company. As no segmental information was available and also Persistent Systems Limited was having intangibles to the tune of 240 million it was not comparable to assessee's case.
Relied:NXP Semiconductor India Private Limited IT(PA) No. 1634/Bang/2014 for assessment year 2009-10---Order dated 22-7-2015 and Saxo India Pvt. Ltd. in [ITA No. 6148/Del/2015 -- Order, dated 5-2-2016] : 2016 TaxPub(DT) 1419 (Del-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 92C
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