9911796707
TMI Blog2021 (12) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... DELHI] had excluded M/s. Karvy Consultants Ltd. as a comparable since its turnover from ITeS segment was less than Rs. 5 crores. Thus, in view of the aforesaid, we do not find any infirmity in the decision of the Commissioner (Appeals) in excluding M/s. Karvy Consultants Ltd. as a comparable. Ground raised is dismissed. - ITA No. 2316/Del/2018 - - - Dated:- 21-12-2021 - SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER For the Appellant by Sh. Nageshwar Rao, Advocate Sh. S. Chakarborty, Advocate For the Respondent by Sh. Mrinal Kumar Das, Sr. DR ORDER PER SAKTIJIT DEY, JM: This appeal by the Revenue is against order dated 26.12.2017 of learned Commissioner of Income Tax (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d arithmetic mean of 11.83%. The margin shown by the assessee at 7% being within the tolerance range, the assessee claimed the transaction with the AE to be at arm s length. Having perused the economic analysis of the assessee, the TPO, though, accepted the comparables selected by the assessee, however, he was of the view that certain companies which are otherwise comparable to the assessee have been deliberately left out. Thus, he introduced five fresh comparables, including M/s. Karvy Consultants Ltd. as comparables. As a result, the arithmetic mean of the final set of comparables worked out to 16.70%. This resulted in an upward adjustment to the ALP. 5. The assessee contested the selection of certain comparables by the TPO in appeal p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attention to the ground raised and the observations of the TPO in his original order dated 03.02.2006, learned Departmental Representative submitted, M/s. Karvy Consultants Ltd. was included as comparable, since, as per the available data, it was functionally similar to the assessee. Further, he submitted, since, in service sector turnover does not have much impact, M/s. Karvy Consultants Ltd. can be treated as comparable as TNMM requires broad comparability. 8. Per contra, learned counsel for the assessee submitted, the TPO has exceeded his jurisdiction while giving effect to the direction of the Tribunal. He submitted, once the Tribunal has upheld the decision of learned Commissioner (Appeals) in excluding the comparables having annua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orical factual finding that the turnover of M/s. Karvy Consultants Ltd. from ITeS segment is much less than Rs.5 crores. 10. On a specific query from the Bench, learned Departmental Representative could not controvert the aforesaid factual position. Thus, when the Tribunal had given a specific direction in the first round of litigation to exclude all comparables having annual turnover of less than Rs.5 crores in ITeS segment, in our view, the TPO has exceeded his brief in including M/s. Karvy Consultants Ltd. as comparable in spite of the fact that its turnover from ITeS segment is below the threshold limit of Rs.5 crores. Pertinently, while deciding assesse s appeal in assessment year 2002-03, the Tribunal in ITA No. 1338/Del/2009, date ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
