2019 (5) TMI 1967

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..... ne Bench of Tribunal, Maveric Systems Ltd. was found to be functionally comparable to the concern providing software development services. Following the same parity of reasoning, we uphold the order of DRP in this regard and dismiss grounds of appeal raised by Revenue. n view of the concession of learned Authorized Representative for the assessee that in case Maveric Systems Ltd. is included in the final list of comparables, then the margins of assessee would be within +/- 5% mean margins of comparables, we do not adjudicate ground of appeal No.4 raised by Revenue.
MS. SUSHMA CHOWLA, JM AND SHRI D. KARUNAKARA RAO, AM For the Assessee : Shri Darpan Kirplani For the Revenue : Shri S.B. Prasad, CIT ORDER PER SUSHMA CHOWLA, JM: The ap .....

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..... es of the Respondent with companies operating as full-fledged entrepreneurs without considering the differences in the functions performed, assets employed and risk undertaken by the Respondent vis-à-vis comparable companies. 1.2 The Ld. AO/Ld. Transfer Pricing Officer ('Ld. TPO') has erred in not considering Respondent export segment's margin. The Ld. Dispute Resolution Panel ('Ld. Panel') erred in confirming the same. 5. The appeal of Revenue is filed after delay of 14 days. The Revenue authorities have filed an application for condonation of delay in filing the appeal late before the Tribunal. In view of the reasons mentioned, the delay in filing the appeal is condoned. The revised grounds of appeal filed by the Revenue are pla .....

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..... on was drawn by the learned Authorized Representative for the assessee to page 1 of order of TPO, wherein he while mentioning the profile of assessee pointed out that the assessee develops designs and testing software for associated enterprises. However, at page 4 of TPO's order while referring to the functions performed, the TPO mentioned the assessee to be involved in software development services, which includes coding and testing. It was the case of assessee before the DRP that the TPO had not analyzed functional activities of said concern properly, wherein Maveric Systems Ltd. was engaged in software development services only as is clear from its annual report. The DRP vide paras 3.3.2 and 3.3.3 at page 6 of its order has referred to t .....

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