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TMI Blog2017 (9) TMI 1795X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee on the issue of Transfer Pricing adjustment relating to international transaction of provision of Marketing Support Services. The Miscellaneous Application of the assessee was allowed and the order of the Tribunal dated 2.6.15 was recalled only for the limited purpose of adjudication on the issue of international transaction of provision of Marketing Support Services vide order dated 19.1.2017 in M.A. No. 342/Del/15. Accordingly, we proceed to hear both the parties on the issue relating to international transaction of provision of Marketing Support Services. 2. The facts of the case are that the assessee is a wholly owned subsidiary of Toluna US (formerly known as Greenfield US) which is the ultimate parent entity of the Tolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007-08 data for the comparable companies considered in its TP Documentation. Thereafter, the TPO made an adjustment to the Assessee's international transactions of 'Provision of Contract IT services' and 'Provision of Marketing Support Services' vide order dated October 25, 2011. The TPO, however, accepted the arm's length nature of the other international transaction entered into by the Assessee with its AEs. 2.3 The final set of comparable companies identified by the TPO in his order to benchmark the Assessee's international transactions of provision of Marketing Support Services are as follows: Provision of Marketing Support Services S. No. Comparable OP/TC margin (using current year data) Working Capital adjusted OP/TC margi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g support services: * To exclude M/s Apitco Limited, M/s Rites Limited and M/s Vapi Waste & Effluent Mgmt. Co. Limited in the final comparable set for determining the revised ALP for the Assessee's international transaction in the nature of provision of Marketing Support Services. 2.7Accordingly, after incorporating the above changes in accordance with the directions issued by the Hon'ble DRP, the final comparable set is as follows: Sr. No. Name of the Company Revised Comparables Set - As per directions of the Hon. DRP 1 Best Mulyankan Consultants Limited 3-34% 2 Choksi Laboratories Limited 28.90% 3 ICRA Management Consulting Services Limited 2.60% 4 IDC (India) Limited 16.67% 5 Indus Technical & Financial Consultants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal services, project selection and project implementation services, energy and power services and therefore, this company was not a company which could be compared to the assessee company. Reliance was placed on the order of the ITAT Delhi Bench in the case of Intrepid Travels Pvt. Ltd. vs ADIT in ITA No. 5582/Del/2012 wherein vide order dated 27.2.2015 this company was excluded on the ground that this company was engaged in manufacturing activity and therefore had completely different FAR from the tested party. 3.2 Regarding WAPCOS Limited (segmental) it was submitted that this company was into high end consultancy and was, therefore, functionally different from the assessee company. Our attention was drawn to the Director's report as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nies providing end to end solutions could not be compared with assessees providing Marketing Support Services to the parent company and hence they were held to be functionally not comparable. ITAT Bangalore Bench has also taken a similar view. We find that Choksi Lab Ltd. is a commercial testing and analysis laboratory engaged in analysing food and agricultural products, cement and building material, chemicals, drugs and paints. The said services rendered by the company are calibration services, pollution control, research and consultancy services. Therefore, this company cannot be said to be functionally dissimilar to the assessee company and we accordingly direct the TPO/Assessing Officer to exclude this company from the final set of comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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