9911796707
TMI Blog2012 (6) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... p; The order of the TPO suffers from errors and is unjustified on account of the following; a. The TPO erred in making an order u/s 92CA and directing adjustments towards shortfall to arm's length price to the extent of Rs. 62,55,873/- b. The TPO erred in rejecting the documentation maintained by the appellant and conducting a fresh search of the comparables. c. The TPO erred in obtaining the information and documents not available in public domain by exercising his power u/s 133(6) of the IT Act, 1961 d. The TPO erred in adopting an arbitrary basis of filtering comparable cases, summarily rejecting the comparables of the petitioner, arbitrarily rejecting the objections raised by the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g his powers u/s 133 of the IT Act, 1961. We find that the sub-ground (a) is general in nature and needs no adjudication. Sub-ground- (b) is rejected as not pressed by the learned counsel for the assessee. As regards sub-ground-(c) & (d) are concerned, we find that these issues are covered by the decision of the co-ordinate Bench of this Tribunal (to which one of us i.e. JM is a signatory) in the case of Genisys Integrating Systems (India) (P.) Ltd. v. Dy. CIT [2012] 20 taxmann.com 715 wherein this Tribunal has directed the AO to adopt the filter of turnover and also to give the assessee an opportunity of rebutting the information and documents obtained by the TPO by exercising his powers u/s 133(6) of the IT Act. Respectfully following the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s compared to its comparables. He submitted that the comparables adopted by the assessee and also TPO are prone to various risks such as market risk, technical risk etc., and these risks are taken into consideration, the net margin of these companies would come down substantially which would be on par with the ALP adopted by the assessee. Thus, according to him, the TPO ought to have allowed the risk adjustment before making comparison of the net margin of the assessee and comparables. 6. The learned DR however, opposed the contention of the assessee and relied upon the orders of the TPO and DRP. The learned DR submitted that the assessee being a captive service provider is having a single customer which is called 'single customer risk' as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e see it, the risk of having a single customer is anticipated risk which may or may not happen. What we have to see is the position in the relevant period whether the assessee had encountered such a risk during the relevant period. 7.1 As seen from the records, the assessee had acquired the business and also earned income out of the said transaction by cost plus basis. Thus, it can be seen that the assessee has not encountered the risk of having a single customer, whereas the same cannot be said as regards the comparables. As pointed out by the learned counsel for the assessee, the comparables were dealing in open market and therefore, they were prone to the marketing and technical risks. They would have incurred certain expenditure on mar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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