The Tax Publishers2021 TaxPub(DT) 0072 (Bang-Trib)

INCOME TAX ACT, 1961

Section 92C

As per TPO Acropetal Technologies Ltd. satisfied all the criteria adopted by TPO and, therefore, suo moto exclusion of this company by DRP was not proper when there was also no objection from assessee.

Transfer pricing - Determination of ALP - Selection of comparables - Suo moto exclusion by DRP of entity selected by TPO

Assessee rendered software development services to its AE abroad. TPO considered Acropetal Technologies Ltd. as comparable to assessee's case. Though there was no objection by assessee before DRP in spite of that DRP suo moto excluded this company from set of comparables. Held: As per TPO, Acropetal Technologies Ltd. satisfied all the criteria adopted by TPO and, therefore, suo moto exclusion of this company by DRP was not proper when there was also no objection from assessee. TPO was, therefore, directed to include this company as comparable.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2013-14


INCOME TAX ACT, 1961

Section 92C

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