2019 (6) TMI 1396

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..... MBER For The Appellant : Shri Sharath Rao, C.A For The Respondent : Shri Pradeep Kumar, CIT ORDER Per B.R Baskaran, Accountant Member The assess has filed this appeal challenging the assessment order passed by the AO for asst. year 2012-13 u/s 143(3) r.w.s 144C of the Act in pursuance of directions given by ld Dispute Resolution Panel (DRP). The issues contested in this appeal relate to TP adjustments made by the TPO and disallowance of bad debts claimed by the assessee. 2. At the time of hearing, the assessee did not press ground No.14 relating to disallowance of bad debts due to smallness of the amount. Accordingly the said ground .....

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..... ologies Ltd., and Informed Technologies India Ltd., and sustained remaining 8 comparables. The same resulted in reduction of T.P adjustment of ₹ 166.27 lakhs and the AO passed the assessment order accordingly by making addition of 166.27 lakhs towards transfer pricing adjustment. 7. Before us, the ld AR sought exclusion of 2 companies viz., M/s Infosys BPO Ltd., and TCS-E-Serve Ltd., on the ground that the turnover of both these companies are more than 200 cores while the turnover of the assessee company was only 20.23 crores. By placing reliance rendered in the case of Northern Operating Services IT(TP)A No.101/Bang/2016, more particularly paragraph 18 of the order thereof, the ld AR submitted that high turnover compa .....

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..... rdingly it was held that small companies cannot be compared with large companies. Accordingly, the assessee herein being a small company cannot be compared with large companies. Accordingly we find merit in the contentions of the assessee and direct the AO to exclude both the companies on the basis of turnover criteria. 11. With respect to Universal Print Systems Ltd., and BNR Udyog Ltd., we noticed that the coordinate bench has restored both the comparables to the file of AO/TPO in the case of Mobility Infotech India Pvt. Ltd. (supra) to consider the objections of the assessee with regard to both the companies. With regard to Universal Print Systems Ltd (Seg. BPO), the assessee has contended in the above said case that it i .....

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