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TMI Blog2018 (8) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence no interference is called for. Coming to Infinite Data Systems Private Limited, tt can be safely concluded that the business profile of the Infinite Data Systems Private Limited does not match with that of the assessee. Therefore, the DRP has rightly excluded this company from the final set of comparables. No interference is called for. Decided against the revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is organised into two segments viz., IT and ITES. The international transactions entered into by the assessee are as under: Nature of international transaction Method selected Amount (In INR) Provision of Software Development Services TNMM 33,51,58,548 Provision of IT Enabled Services TNMM 40,02,92,121 Availing of services TNMM 3,04,87,786 Purchase of fixed assets TNMM 10,95,335 Payment of cost recharges CUP 63,26,746 Receipts of cost reimbursements TNMM 1,28,73,606 7. The TPO examined the provisions of I.T enabled services by comparables used by the assessee vis a vis the comparables used by the TPO himself and finally concluded by using the following comparables for this segment: S. No. Company Name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .62 15.46 13 Persistent Systems Ltd. 30.50 28.80 14 Sasken Communication Technology Ltd. 17.54 18.87 15 Tata Elxsi Ltd. 19.82 17.98 16 Thinksoft Global Services Ltd. 17.35 14.55 17 Thirdware Solution Ltd 41.63 38.98 18 Thirdware Solution Ltd 41.63 70.60 19 Wipro Technology Services Ltd. 70.60 28.06 10. Accordingly, the arm's length price of the international transaction related to provision of I.T. services was computed as under: Total cost ₹ 29,02,24,261/- AR,'s length price at a margin of 28.06% ₹ 37,16,60,657/- Price received ₹ 33,51,58,550/- Proposed adjustment u/s 92CA ₹ 3,65,02,107/- 11. And finally the cumulative adjustments were determined as under: Nature of internatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services segment, the DRP directed for exclusion of E-Infochips Bangalore Ltd and Infinite Data System Pvt. Ltd from the final set of comparables. 15. In our understanding of the facts, the grievance of the Revenue should have been related to the exclusion of these two comparables only. 16. In so far as E-Infochips Bangalore Ltd is concerned, this company is primarily engaged in software development and ITES. This company is a partner of choice of Fortune 500 companies for product innovation and hi-tech engineering consulting and has provided solutions to key verticals like Aerospace & Defense, Consumer Electronics, energy and Utilities, healthcare, home, office and industrial automation, media and broadcast, medical devices, retail and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al consulting, design & development of software, maintenance, systems integration, implementation, testing and infrastructure management services. However, the assessee is rendering services like E-business & web, application services, mobile & PDA, business intelligence and reporting, systems integration, I.T. infrastructure, product related customer relationship management & telephony services. It can be safely concluded that the business profile of the Infinite Data Systems Private Limited does not match with that of the assessee. Therefore, the DRP has rightly excluded this company from the final set of comparables. No interference is called for. 18. Considering the facts of the case in totality, we do not find any reason to interfere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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