2017 (7) TMI 1237 - HC - Income Tax

TPA - Comparable selection - whether the ITAT erred in directing the TPO to exclude M/s. E-Infochips Ltd. M/s. Larsen & Toubro Ltd. M/s. Persistent Systems Ltd. M/s. Infosys Limited Saxo India Ltd. and Zylog Ltd. from the list of comparables for the purposes of determination of the arms length price of the international transaction on account of functional dissimilarity when compared with the Assessee? Held that - Having heard the learned counsel for the parties the Court find that the ITAT has assigned clear and cogent reasons that the above entities should be excluded from the list of comparables. The findings are factual and based on proper analysis and does not give rise to any substantial question of law.

Summary

The Delhi High Court dismissed the Revenue's appeal against the ITAT order excluding certain companies from comparables list for determining arms length price. The Court found ITAT's reasons for exclusion clear and cogent, based on proper analysis, and not raising any substantial question of law. No costs were awarded.