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TMI Blog2021 (10) TMI 1382X X X X Extracts X X X X X X X X Extracts X X X X ..... s in all these assessment years. We therefore uphold learned DRP s direction ordering exclusion of M/s. Infosys BPO Limited from the array of comparables. Excluding M/s. Jeevan Scientific Technology Limited on the ground that it had failed to satisfy the turnover filter despite the fact that the said entity had derived income both from BPO operation as well as ERP segment - We find that the Revenue s instant arguments are against the facts on record wherein it has been found that this entity had derived income of Rs.79.21 lakhs form BPO operation only and no revenue from ERP segment as against the turnover limit of Rs.1 Crore set by the TPO in his analysis. We therefore decline the Revenue instant third substantive ground as well. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany - HELD THAT:- The same is admitted being an alternate plea; without prejudice to the foregoing third substantive ground, and restored back to the Assessing Officer as per law in light of the relevant facts and the corresponding factual position in preceding and succeeding assessment years. - ITA No. 627/Hyd/2016 & C.O. No. 35/Hyd/2016 And ITA No. 636/Hyd/2016 - - - Dated:- 4-10-2021 - Shri S.S. Godara, Judicial Member And Shri L.P. Sahu, Accountant Member For the Assessee : Shri Deepak Chopra. For the Revenue : Shri YVST Sai. (CIT-D.R.). ORDER Per Shri S.S. Godara, J.M. : This Revenue s appeal ITA No.627/Hyd/2016 along with assessee's cross objection C.O. No.35/Hyd/2016 followed by cross appeal ITA N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iv) That high or low turnover do not influence the margins of the comparables. 3. Whether the DRP failed to appreciate the fact in excluding Jeevan Scientific Technology Limited, when both segments BPO and ERP fall under ITES. 4. Whether the DRP is justified in excluding TCS eserve Ltd. without verifying the fact that it has not failed the revenue income filter. 5. Whether DRP is justified in excluding Mastiff Technology Pvt. Ltd. only for the reason of fluctuation in provisions for doubtful debts and holding that this is an extra ordinary situation. 6. Whether the DRP is justified in excluding E4e Healthcare Business Services Pvt. Ltd. only for the reason that there is inconsistency in accounting as in earlier y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited from the array of comparables. 4. Next comes the Revenue s third substantive ground avers that the DRP has erred in law and on facts in excluding M/s. Jeevan Scientific Technology Limited on the ground that it had failed to satisfy the turnover filter despite the fact that the said entity had derived income both from BPO operation as well as ERP segment. We find that the Revenue s instant arguments are against the facts on record wherein it has been found that this entity had derived income of Rs.79.21 lakhs form BPO operation only and no revenue from ERP segment as against the turnover limit of Rs.1 Crore set by the TPO in his analysis. We therefore decline the Revenue instant third substantive ground as well. 5. We next proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to dispute that because of the said extraordinary situation of provision for doubtful debts only, the said entity s margin has come down from 21.78% to 2.28%. The factual position is no different regarding last entity M/s. E4e Healthcare Business Services Pvt. Ltd. wherein not only the learned panel but also this tribunal's order in A.Y. 2010-11 pages 788 to 796 of paper book has also decided the issue in assessee's favour. And that the assessee has also filed financials of this foregoing latter entity showing variation as per Schedule-I of the significant accounting policy. Leaned authorized representative lastly sought to highlight the fact that both the instant latter twin entities have been rejected in the learned panel detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment and invoices. Faced with this situation, we deem it appropriate to restore the instant issue back to the Assessing Officer for his afresh factual verification as per law within three effective opportunities of hearing subject to the condition that the assessee itself shall file all the documentary evidence by electronic mode as well as registered post. Ordered accordingly. This second substantive ground is allowed for statistical purposes. 9. Next comes the assessee's third substantive ground regarding capital expenditure on software license fees disallowance of Rs.2,05,96,523 made by the Assessing Officer on the ground that it the assessee had not filed any objections to this effect before the DRP. Learned CIT-DR fails to dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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