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TMI Blog2023 (3) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... indal Intellicom Ltd. passes the export filter for F.Y. 2012-13 with export to sales ratio of 81.85%, the correct margin needs to be calculated. So we find no illegality in issuing directions by Ld. CIT(A) to the Ld. TPO to verify the facts after providing opportunity of being heard to the assessee. Hence, ground No.2 is also determined against the Revenue. - ITA No.1614/M/2021 - - - Dated:- 29-7-2022 - SHRI BASKARAN BR, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For the Assessee : Shri Arijit Chakravarty, A.R. For the Revenue : Shri Rajesh Mishra, D.R. ORDER Per : Kuldip Singh, Judicial Member: The appellant, ACIT, Mumbai (hereinafter referred to as the Revenue) by filing the present appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ational support services offered by Agilyst Inc (USA) to its clients. During the year under consideration assessee entered into international transactions qua provision of ITES to the tune of Rs.77,65,29,181/-. Assessee in order to benchmark its international transactions applied Transactional Net Margin Method (TNMM) with OP/OC as profit level indicator. Ld. TPO accepted the TNMM with OP/OC as profit level indicator as the most appropriate method to benchmark the international transactions finally selected six comparables with average of 24.62% as against assessee s own margin of 16.60% and thereby proposed the adjustment on account of Arms Length Price (ALP) at Rs.6,37,00,000/-. 3. Assessee carried the matter before the Ld. CIT(A) by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NC 15.91 6.31 11.11 4 ICRA Techno Analytics Ltd 16.73 4S.50 33.31 33.68 5 IRIS Business Services Limited NC 24.37 6.26 15.56 6 Interglobe Technologies Pvt Ltd NC 9,49 18.12 14.13 35th percentile 14.13 65th percentile 33.68 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Red Hat India Private Limited in ITA No.1379/M/2021 order dated 25.02.22 wherein MPS Ltd. has been found to be not a valid comparable vis- -vis routine ITES provider. 7. In order to examine the suitability of MPS Ltd. as a comparable vis- -vis assessee who is a routine ITES service provider we have perused the annual report available at page 159 to 211 of the paper book. Profile of the MPS Ltd. shows that MPS Ltd. provides complete end to end publishing solution across the author to reader value chain. Their services include content development, print and digital publishing services, technology solutions, rich media products and customer services for educational, trade and scholarly publishers. It is a one stop destination for some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucts. At the same time, MPS Ltd. is into providing diversified services with no segmental financials available. More so MPS Ltd. is a risk taking company having supernormal profit whereas assessee is working on a cost + mark up model in providing routine ITES services. Even otherwise it is a matter of record as mentioned in para 6.5.1 of the impugned order passed by Ld. CIT(A), MPS Ltd. has not been accepted as suitable comparables vis- -vis assessee in A.Y. 2014-15 by the Revenue itself it being a KPO companies, hence cannot be a valid comparable qua BPO company. So we are of the considered view that Ld. CIT(A) has rightly excluded MPS Ltd. as a comparable vis- -vis assessee. So ground No.1 is determined against the assessee. 12. So far ..... X X X X Extracts X X X X X X X X Extracts X X X X
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