9911796707
TMI Blog2013 (12) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... es with Market Tools Inc: Provision of IT enabled back office services; and Reimbursement of expenses 3. The Learned Transfer Pricing Officer ('Ld TPO') carried out an adjustment to the Assessee's International transaction of IT enabled back office services provided to its AEs. 4. The services are in the nature of back end support which includes survey report designing, survey data programming, data processing etc. so as to support the market research business of its AE i.e. Service Agreement. 5. In the TP Study the assessee adopted Transactional Net Margin Method ('TNMM") as the Most Appropriate Method ('MAM') for determining the arm's length price ALP. The assessee identified 12 comparable companies which according to them were functio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tek Technologies Ltd. Out of the balance 18, the assessee had objected to specifically the following comparables:- Eclerx Services Ltd. - We find that comparability of this company has been dealt with in detail in the case of Capital IQ Information systems (India) Pvt Ltd vs. DCIT ITA 1961/H/2011 dt.23.11.12 for the AY 2007-08 at para 14 & 15 they have held that Eclerx Services Ltd cannot be taken into account in view of their extra ordinary profits and that company was engaged with Knowledge Process Out Sourcing business which is distinct and different from the line of nature of activities of the assessee. Hence this company should be excluded while determining ALP. 9. The next objection is regarding inclusion of Infosys BPO Ltd and Wip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unless segmental results in respect of comparable line of activity available. b) In case of comparable companies foreign exchange loss or gain have been taken into account in computing the profit, in the case of assessee also the foreign exchange gain or loss should be taken into account in determining the overall profit. c) All facts which impact the financial result of comparable companies should be taken into account and reasonable accurate adjustment should be made for the same. In this connection the rates of depreciation adopted by the assessee are significantly different from (straight line as compared with WTP; higher rate than that prescribed in schedule VI) those adopted by the comparable companies suitable adjustment for the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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