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TMI Blog2015 (1) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... e – the AO/TPO is directed to verify the claim of the assessee by re-computing the Arm’s Length Price of the international transactions of the assessee company with its AE after excluding the four entities form the list of final comparables – Decided in favour of assessee. Computation of deduction u/s 10A - Mistake in taking the amount of book profits or not – Held that:- The assessee has only sought a direction from the Tribunal to the AO to verify the relevant mistake from the record and rectify the same - Since the revenue has no objection in this regard, the AO is directed to verify from the record the mistake pointed out by the assessee – Decided in favour of assessee. - ITA No.435/Hyd/2014 - - - Dated:- 31-10-2014 - SHRI P.M.JA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Arm s Length Price(ALP) of these international transactions of the assessee company with its Associated Enterprises(AE), a reference was made by the Assessing Officer to the Transfer Pricing Officer (TPO) under S.92CA(1) of the Act. In the TP Study Report submitted by the assessee, TP analysis was done by applying Transactional Net Margin Method (TNMM), taking Operating Profit to Total Cost (OP/OC) as Price Level Indicator (PLI). In the said report, four comparables were selected by the assessee by applying certain filters and since the Arithmetic Mean of OP/OC of the said four comparables was 6.41%, as against the OP/OC of 15.15% of the assessee in relation to its international transactions with AE, the price charged to the AE in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.76 48.20 5. Crossdomain 33.76 29.38 6. Eclerx Services Ltd. 187.98 53.44 7. Infosys B P O Ltd. 108.23 16.90 8. Jeevan Softech Technology Ltd. 1.79 16.56 9. Microland Limited 144.05 2.35 10. Microgenetic Systems Ltd. 1.27 10.11 11. R.Systems International Ltd.(Seg) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find merit in the submissions made by the assessee on this issue and holding the action of the TPO to be proper, they declined to interfere with the same. The DRP also overruled the other objections raised by the assessee. Accordingly, final assessment order was passed by the Assessing Officer on 6.1.2014 under S.143(3) as per the directions given by the DRP under S.144C(5), making therein the addition of ₹ 1,52,85,215 to the total income on account of TP Adjustment. Aggrieved by the order of the Assessing Officer, the assessee has filed the present appeal before the Tribunal. 7. We have heard the arguments of both the sides and also perused the relevant material on record. Although the assessee has raised various issues in grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lier years 1. Accentia Technologies Limited 49.40 Removed by ITAT in 2007-08 and 2008-09 2. Acropetal Technologies (Segmental) 25.01 Accepted by the ITAT in 2008-09 3. Cosmic Global Ltd. 48.20 Accepted by the ITAT in 2007-08 4. Eclerx Services Ltd. 53.34 Removed by the ITAT in 2007-08 and 2008-09 5. Genesys International Ltd. 71.50 Removed by the ITAT in 2008-09 and 2007-08 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he final list of comparables. 10. At the time of hearing before us, the learned counsel for the assessee has submitted that if the above four entities are excluded from the final list of comparables for the purpose of comparability analysis, the Arithmetic Mean Margin of the remaining eight comparables would come to around 17% and the same being lower than the profit margin charged by the assessee company to its AE in the relevant international transactions, no addition on account of TP adjustment is required to be made in the case of the assessee. We accordingly direct the Assessing Officer/TPO to verify the claim of the assessee by recomputing the Arm s Length Price of the international transactions of the assessee company with its AE ..... X X X X Extracts X X X X X X X X Extracts X X X X
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