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TMI Blog2014 (4) TMI 1089X X X X Extracts X X X X X X X X Extracts X X X X ..... of comparables - (a) Infosys BPO Ltd. (b) Wipro Ltd. (c) Moldtek Technologies (d) Eclerx Services Limited 3. As for the first two companies, viz. Infosys BPO Ltd. and Wipro Limited, Learned Departmental Representative submitted that they have been excluded by the CIT(A) on the ground that they are giant companies and their turnover is not comparable with that of the assessee. In this connection, it is submitted by the Learned Departmental Representative that in the ITES sector, size does not matter and it is quality of the manpower which matters. He also placed reliance on the decisions of the Mumbai Bench of the Tribunal in the case of Vodafone India Services Pvt. Ltd. (ITS 95 ITAT 2013(Mum)-TP) and of the Delhi Bench of the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and other material on record. We find that the issue in question is covered by the consistent view taken by the Hyderabad benches of the Tribunal in similar matters, following the decisions of Capital IQ Information Systems P. Ltd. (supra) and Market Tools p. Ltd. Following the same, we find no infirmity in the action of the CIT(A) in excluding the two companies, viz. Infosys and Wipro from the list of comparables. We accordingly uphold the order of the CIT(A) on this aspect reject the grounds of the Revenue on this appeal. 6. As for the exclusion of the third and fourth companies, viz. Moldtek Technologies and Eclerx Services Technologies, the Learned Departmental Representative strongly supported the order of the Assessing Officer sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rprise, i.e. KPO companies, and the said entities cannot be taken as comparable for the purpose of determining ALP of the transactions of the assessee company with its AE. Further, in the case of Market Tools Research (supra), it has been held that Eclerx Services cannot be taken as a comparable in view of the extraordinary profits of that company and that the company was engaged with knowledge process outsourcing business, which is distinct and different from the assessee's business. As for Moldtek Technologies Ltd., in the proceedings for the assessment year 2008-09, in assessee's own case, the DRP has accepted the assessee's contention that that company cannot be taken as comparable because of exceptional financial results, due to merger ..... X X X X Extracts X X X X X X X X Extracts X X X X
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