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TMI Blog2016 (12) TMI 1656X X X X Extracts X X X X X X X X Extracts X X X X ..... directions dated 25.09.2012, in proceedings under section 143(3) r.w.s. 144C(1) of the Income Tax Act, 1961; in short "the Act". 2. We come to assessee's pleadings. The instant case file indicates that its sole substantive ground pleads that the Transfer Pricing Officer (the TPO) & the above DRP have erred in making transfer pricing adjustment of Rs. 73,43,657/- in respect of its international transactions of provision of marketing support services rendered to its eponymous associate enterprises based in Europe and Asia Pacific region totaling to Rs. 7,73,62,467/-. 3. We come to basic facts first. The assessee company manufactures cassia and guar gum powder. It provided above marking support services to its associate enterprises stated in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer's action in its order dated 25.09.2012 except to the extent that it would direct the Assessing Officer to exclude M/s. Moldtek having abnormal results. The Assessing Officer accordingly framed the impugned assessment re-computing the above transfer pricing adjustment of Rs. 73,43,657/- in question leaving the assessee aggrieved. 5. We have heard both the parties. Case file perused. The assessee's first argument in the course of hearing is that the authorities below have erred in rejecting its transfer pricing study thereby undertaking a fresh selection process of comparables having data of the relevant financial year 2007-08. It however fails to dispute that its original comparables were not based on inter alia selection of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asoning herein as well in absence of any distinction on facts being pointed out and direct the Assessing Officer to exclude M/s. Coral Hubs Ltd. from the above comparables and finalize afresh computation. 8. We now come to M/s. Accentia Technoligies Ltd. Learned counsel representing assessee pleads that the said entity had seen merger of two units during the relevant financial year having impact on its margins. We find that a co-ordinate bench of this tribunal in Symphony Marketing Solutions India Pvt. Ltd. case ITA No.1316/Banglore/2012 decided on 14.08.2013 excludes this entity for the impugned assessment year itself on the ground that above extraordinary events of merger had an impact on its margins. We notice that various other co-ordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d comparables to BPO and other IT enabled services. We thus direct the Transfer Pricing Officer to undertake consequential exercise restricting inclusion of M/s. Crossdomain Solutions only to the extent of its result in IT enabled services segment as per law. The assessee succeeds in its instant argument to this extent only. 11. We draw support from our above discussion and direct the Transfer Pricing Officer to finalize consequential computation. Learned counsel at this stage submits that the assessee is entitled for working capital adjustment and +/-5% relief in the nature of tolerance margin. Ld. Departmental Representative states that the Revenue would have no objection if these two issues are considered as per law in consequential com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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