INCOME TAX ACT, 1961

Section 92C

Transfer pricing - Determination of ALP - Selection of comparables - Different financial year ending

Assessee rendered IT-enabled services to its AE abroad. TPO considered R-Systems International Ltd. as not comparable to assessee's case on the ground of different financial year ending. Held: Rule 10B(4) does not exclude from consideration data of an entity merely because its financial year is different from financial year of assessee. What the Rule requires is that data to be used in analyzing financial results of an uncontrolled transaction with an international transaction would be the data relating to financial year in which international transaction had been entered into. In the instant case data relating to the relevant financial year of R-Systems International Limited was available, therefore, it was to be taken as comparable, though financial year followed was different.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 92C

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