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TMI Blog2020 (8) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... om the facts involved in the impugned assessment year insofar as it relates to this comparable. We hold that Axis Integrated Systems Ltd. cannot be treated as a comparable to the assessee, hence, should be excluded from the list of comparables. Before us, the learned Counsel for the assessee has filed a written note, as per which, on exclusion of Axis Integrated Systems Ltd., the weighted average margin of rest of the comparables would work out to 15.36%. Assessee s margin would be within the acceptable range requiring no further adjustment. We direct the Assessing Officer to compute the margin of comparables afresh and grant consequential relief to the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... arketing support services to the AEs. The assessee benchmarked the aforesaid transaction by selecting transactional net margin method (TNMM) as the most appropriate method. For comparability analysis, the assessee selected three comparables with weighted average margin of 14.52%. Since, the margin shown by the assessee @ 13.29% was within the acceptable range, the transaction with the AEs was claimed to be at arm's length. The Transfer Pricing Officer, however, was not satisfied with the economic analysis made by the assessee. Though, he accepted TNMM as the most appropriate method, however, he did not accept one of the comparables selected by the assessee, namely, Asian Business Exhibition and Conference Ltd. Further, the Transfer Pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments of this company as placed in the paper book. Further elaborating, he submitted, the liasioning and consultancy services provided by this company is in relation to Foreign Trade, Customs, Excise and GST related matters. In this context, he drew our attention to the information contained in the website of the company as placed at Page-68 and 69 of the appeal set. Thus, he submitted, the company being functionally dissimilar cannot be selected as comparable. In support of such contention, he relied upon the following decisions:- i) Bergen Engines India Pvt. Ltd. v/s ACIT, ITA no.7802/Del./2017, dated 27.04.2020; ii) PCIT v/s LI & Fung India Pvt. Ltd., ITA no.176 of 2019 (DHC), dated 08.07.2019; iii) LI & Fung India Pvt. Ltd. v/s AC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y/liasioning services relating to foreign trade, customs, excise, GST, etc., are of expert nature and cannot be compared with routine marketing services like raising invoice, co-ordination with customers, logistics, etc. Similar view was expressed in case of LI & Fung India Pvt. Ltd. (supra). Notably, the decision of the Bench in case of LI & Fung India Pvt. Ltd. (supra) was challenged by the Revenue before the Hon'ble Delhi High Court specifically on the issue of comparability of Axis Integrated Systems Ltd. While dealing with the issue, the Hon'ble High Court has very categorically observed that no comparison can be drawn between a captive service provider and an entity like Axis Integrates Systems Ltd. which is providing liasioning s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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