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TMI Blog2020 (9) TMI 1282X X X X Extracts X X X X X X X X Extracts X X X X ..... this company and that there was major fluctuation in its profits, which influenced turnover of this company. Tribunal consistently in various decisions for A.Y: 2011-12 held that, this company does not satisfy service income filter being 75%. We therefore, do not see any reason to set aside this company to Ld.TPO - Ground raised by revenue stands dismissed. - IT(TP)A No.39/Bang/2016, IT(TP)A No.17/Bang/2016 - - - Dated:- 28-9-2020 - SHRI A.K GARODIA, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER For the Assessee : Shri Pradeep Kumar, CIT For the Revenue : Shri T Suryanarayana, Advocate ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal arises out of MP No.269/Bang/2017 filed by revenue in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is available and that it fails 75% service revenue filter, by not acknowledging the fact that the determination of ALP by carrying out comparability analysis of the comparable companies is an art and not exact science as no two companies are exactly same and also the DRP erred in applying the service revenue income filter by taking 'software service income' to turnover ratio rather than 'service income' to turnover ratio. 5. It has been alleged that, DRP excluded E-Infochips Ltd., on the ground of having service income less than 75% of sales, which is alleged to be contrary to observations of Ld.TPO. 6. Ld.CIT DR submitted in written submission that Ld.TPO while analysing comparables observed that, this company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alid grounds contemplated by the relevant statutory provisions of the act and rules. As far as ground No. 5 in revenue s appeal is concerned, the revenue seeks to challenge the exclusion of AE Infotech Ltd. On the ground that it failed direct software service income filter at 75%. At the outset, the assessee submits that E Infotech Ltd was excluded by the DRP on the ground that: (i) no segmental information is regarding its diverse functions is available; (ii) it failed the software service income filter and 75%; (iii) there were major fluctuations in profit and turnover every years which seems to be influenced by extraordinary/peculiar circumstances; and (iv) there is a presence of inventory (page 10 and 11 of the DRP s directions). The re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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