2018 (6) TMI 1637

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..... AO to exclude TCS- E-serve Ltd., from the final set of comparables.
Shri R.C.Sharma, AM And Shri Pawan Singh, JM Assessee by: Shri P. Lohia / Shri Nikhil Tiwari Revenue by: Shri V. Janardhanan ORDER R.C.Sharma (A.M): This is an appeal filed by the assessee against the order of DRP- 1(WZ), Mumbai dated 22/09/2017 for A.Y.2013-14 in the matter of order passed u/s.143(3) r.w.s.144C(13) of the IT Act. 2. The grievance of the assessee revolves around exclusion of TCS E-Serve Ltd., for the final set of comparables. Assessee has alleged TPO in making a transfer pricing adjustment of ₹ 25,27,43,714/- in the international transaction of provision of IT-enabled services. 3. At the outset, learned AR placed on record the order of the .....

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..... ; 3337.4 crores as on 1st April, 2010 and additions during the year were more than ₹ 756.24 crores. Thus, this company having huge intangibles assets cannot be compared with the assessee who has no significant intangibles. That apart, it has been pointed out by the Ld. Counsel that, this company has been emerged with TCS in the year 2009 which has led to shooting up of its profit margin to 13% to 68%-70%. This factor itself points out that its high profit margin were due to its huge brand value, which cannot be held to be comparable with captive service provider like Assessee Company. So far as the decision of ITAT Delhi Bench in the case of "Techbooks International Pvt. Ltd‟ is concerned as pointed out by the Ld. Counsel, we fi .....

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..... the case ITA No.6795/Mum/2017 M/s. Capita India Pvt. Ltd., of International Limited, we order for the elimination of this company from the final set of comparables". Subsequently in the case of Equant Solutions India Pvt. Ltd also this company has been held to be un-comparable on the following reasoning: "We have also considered the rival contention for exclusion of TCS e-service td. It is mainly involved in transaction processing and technology services. It carries on business of providing technology service such as software testing, verification and validation. It is also developed a software such as transport management software therefore functionally this company is dissimilar to the assessee company. It also owns huge intangi .....

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