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| The Tax Publishers2020 TaxPub(DT) 2155 (Del-Trib) INCOME TAX ACT, 1961
Section 92C
Where L & T-Sargent & Lundy Ltd., Tata Projects Ltd., UB Engineering Ltd. having functional profile similar to that of assessee engaged in engineering design services were excluded as not comparables to assessee's case on the ground of failing service income filter matter was remanded to TPO to verify assessee's submission that said companies were having service income of more than 75%.
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Transfer pricing - Determination of ALP - Selection of comparables - Alleged failing of service income filter
Assessee rendered engineering design services to AE abroad. TPO considered UB Engineering Ltd. Tata Proect Ltd.a nd L&T Sargent & Lundy Ltd. not as comparables to assessee's case on the ground of failing service income filter. Assessee contended that all three companies based service income filter of 75%. appliedby TPO.Held: L & T-Sargent & Lundy Ltd., Tata Projects Ltd., UB Engineering Ltd. were having functional profile similar to that of assessee. In line with assessee\s sumission TPO was directed to verify data supplied by assessee from annual report and if said companies were having service income of more than 75% then to retain these as suitable comparables.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2004-05
INCOME TAX ACT, 1961
Section 92C
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