2019 (11) TMI 1307 - HC - Income Tax

TP Adjustment - comparable selection - HELD THAT - Alphageo India Pvt. Ltd. is engaged in seismic surveys, whereas the assessee is engaged in the manufacture, distribution, sale of digital switching and telecommunication equipments, and that for the Assessment Year in question, the segment was only for installation of such equipments. Even on the basis of functional dissimilarities, the exclusion of Alphageo India Pvt. Ltd. from the comparables was called for. In view of the aforesaid, no question of law arises in the present appeal.

Summary

Issues:
1. Delay condonation application
2. Appeal by Revenue against ITAT order
3. Comparison of Alphageo India Pvt. Ltd. with the assessee for Assessment Year 2008-09

Delay Condonation Application:
The High Court allowed the delay condonation application in CM No. 1645/2019 for reasons stated in the application, and the delay was condoned. The application was disposed of accordingly.

Appeal by Revenue against ITAT Order:
The Revenue filed an appeal (ITA 21/2019) challenging the order dated 06.04.2018 by the Income Tax Appellate Tribunal (ITAT) relevant for the Assessment Year 2008-09. The appeal was against the order passed in ITA No. 2209/Del/2014 preferred by the assessee. Additionally, ITA No. 2514/Del/2014 preferred by the Revenue for the same assessment year had also been decided. The High Court had previously rejected ITA 1277/2018 by the Revenue related to the same impugned order, stating that the assessee was engaged in the manufacture, distribution, and sale of digital switching and telecommunication equipment, while Alphageo India Pvt. Ltd. was involved in seismic surveys. Due to functional dissimilarities, the exclusion of Alphageo India Pvt. Ltd. from comparables was deemed necessary. Consequently, the High Court found no question of law arising in the present appeal and dismissed it accordingly.

Comparison of Alphageo India Pvt. Ltd. with the Assessee for Assessment Year 2008-09:
The High Court's decision was based on the distinct business activities of the assessee and Alphageo India Pvt. Ltd. The court highlighted the differences in their operations, emphasizing that the assessee's segment for the relevant assessment year was limited to the installation of digital switching and telecommunication equipment. Given these disparities, the exclusion of Alphageo India Pvt. Ltd. from comparables was considered appropriate. As a result, the High Court dismissed the appeal by the Revenue, concluding that no question of law arose in the matter.