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| The Tax Publishers2020 TaxPub(DT) 2651 (Bang-Trib) INCOME TAX ACT, 1961
Section 92C
In the absence of segmental details, as regards revenue from software product sales apart from rendering of software services Avani Cincom could not be considered as comparable to assessee who was rendering software development services only.
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Transfer pricing - Determination of ALP - Selection of comparables - Functional dissimilarity and lack of segmental data
Assessee rendered software development services to AE abroad. TPO considered Avani Cimcon Technologies Ltd. as comparable to assessee's case. Held: Avani Cimcon Technologies Ltd. had developed a software product by name 'DX change', and revenue from software product sales apart from rendering of software services and therefore, was functionally different from assessee and in the absence of segmental details, Avani Cincom could not be considered as comparable to assessee who was rendering software development services only.
Followed:NXP Semiconductors (P) Ltd. v. ACIT, Order, dated 14-11-2014 for the assessment year 200708 in IT(TP)A No. 1174/Bang/2011.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08
INCOME TAX ACT, 1961
Section 92C
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