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TMI Blog2019 (6) TMI 1551X X X X Extracts X X X X X X X X Extracts X X X X ..... Since appeals were heard together, these are being disposed of by consolidated order, for the sake of convenience. 2. ITA No. 6721/Mum/2010 - Revenue's appeal for A.Y. 2005-06 Though various grounds are raised, the issues arising are dealt with as under:- One issue relates to adjustment u/s. 92CA(4) of the Act of Rs. 2,14,25,160/-in respect of international transactions entered with the Associated Enterprise (AE). 3. Brief facts on this issue are that the assessee is a private limited company engaged in the business of providing market analysis and consultancy services to its clients and sometime also to clients of other FS group subsidiaries. In addition to above, it also provides low end back office support services to its AE. During ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pressly reject the company 'Crisil Marketwire Limited'. Hence he noted that this company is also being considered as comparable company. Learned CIT(A) further accepted assessee's submission that five of the companies selected by the TPO should be rejected. 5. Finally, learned CIT(A) came up to seventeen comparables list as under:- Sr.No. Company name OPM margin (OP/TC) 1 Allsec Technologies Limited 30.49% 2 Ace Software Exports Limited 15.46% 3 Cosmic Global Limited 19.08% 4 Goldstone Teleservices Limited (Seg) 15.95% 5 Saffron Global 24.89% 6 Transworks Information Services Limited 2.87% 7 Apex Advanced Technology Private Limited 13.45% 8 MCS Limited 23.27% 9 R Systems International Limited (Seg) 5.46% 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table. However, we find that learned CIT(A) has directed that the TPO did not expressly reject the company 'Crisil Marketwire Limited' which appeared as comparable company in set of comparables in assessee's transfer pricing study and hence he also directed this should be included in comparables. This direction of learned CIT(A) in our considered opinion is not sustainable. When learned CIT(A) is accepting that search process of twenty one comparables selected by the TPO should be adopted, then learned CIT(A) again cannot blow hot and cold and insist that one of the comparable appearing in the assessee's original transfer pricing study should be included. This act in fact, is cherry picking by learned CIT(A) himself and the same is not sust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el of the AO. Although, the assessee in Schedule F of the Balance Sheet had mentioned that the Sundry Creditors and others include advance received from Frost & Sullivan Inc. against capital expenditure of Rs. 1,13,84,034/-, we find during the course of assessment proceedings the assessee has given a statement that it has received advance towards market research analysis services rendered during the year. Therefore, the details given in the balance sheet and the submissions made during the course of assessment proceedings are contradictory to each other. Neither the AO nor the Ld. CIT(A) has gone into this aspect. Therefore, when it was proposed that the issue needs verification at the level of the AO, both the parties fairly agreed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be any occasion to make arm's length price adjustment for notional interest in this regard. Learned counsel placed reliance on the decision of Hon'ble Bombay High Court in the case of CIT Vs. Indo American Jewellery Ltd. (44 taxmann.com 310). It was held in this decision that where there was complete uniformity in the act of the assessee in not charging interest from both AE and non-AE debtors for delay in realisation of export proceeds, the Tribunal was right in deleting the addition of notional interest on outstanding amount of export proceeds. Citing above said decision, learned counsel stated that this decision is squarely applicable in this case as the assessee has not charged interest from non-AEs also, adjustment made by the TPO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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