| The Tax Publishers2020 TaxPub(DT) 3426 (Del-Trib) INCOME TAX ACT, 1961
Section 92C
'Infosys Ltd.' was engaged in technical consulting, design, development, re-engineering, maintenance systems integration package evalaution, infrastructure management services, etc. It derived income from sale of software products such as Finacle Analyze, Flypp, iEngaged, etc., besides holding significant intangibles, including brand value. This company operated at a very large scale with sales of Rs. 25,385 crores and earning super normal profits of about 43.54% and its revenue comparises of more than 50% of income from on-site. Accordingly, it could not be considered as suitable comparable to assessee engaged in software development services.
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Transfer pricing - Determination of ALP - Selection of comparables - A giant company having fully risk bearing profile and significant intangibles
Assessee rendered software development services to its AE abroad. TPO considered Infosys Ltd. as comparable to assessee's case.Held: 'Infosys Ltd.' was engaged in technical consulting, design, development, re-engineering, maintenance systems integration package evalaution, infrastructure management services, etc. It derived income from sale of software products such as Finacle Analyze, Flypp, iEngaged, etc., besides holding significant intangibles, including brand value. This company operated at a very large scale with sales of Rs. 25,385 crores and earning super normal profits of about 43.54% and its revenue comparises of more than 50% of income from on-site. Accordingly, it could not be considered as suitable comparable to assessee's case.
Followed:Cadence Design Systems (I) Ltd. vide ITA No. 6315/Del/2015, Order, dated 2-4-2018 for Assessment Year 2011-12.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 92C
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