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TMI Blog2023 (8) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... aring the assessee with companies which have an entirely different functional and risk profile. C. By applying RPT filter as 25% of total turnover instead of 15% as applied by the assessee. D. By not making suitable adjustments to account for differences in the risk profile of the assessee vis-à-vis the comparable Companies. 2. The learned TPO erred by charging notional interest on delayed receipt and balance outstanding from Associated Enterprise which has resulted in a proposed addition of Rs. 23,26,382/-. Under this ground, we have the following specific objections: A. The learned TPO erred by charging notional interest on delayed receipt and closing balance outstanding from associated enterprises without any basis. B. The learned TPO erred by charging notional interest for the entire year under consideration irrespective of the date of receipt and credit period. In doing so, the learned TPO and learned Assessing officer erred by not following the directions of the Hon'ble Dispute Resolution Panel. 2. Facts of the case, in brief, are that the assessee company engaged in the provisions of ITES, e-filed its return of income for the A.Y 2013-14 on 22.11.2013 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RP and the Paper Book filed by the assessee. Admittedly, in the present case, the TPO has applied the export turnover filter of 75% as seen from the record. However, the assessee before us demonstrated that this company fails in the export turnover. In our view, it would be appropriate, if the TPO examine afresh and find out whether this comparable fulfills the export turnover filter or not. Needless to say that the above said exercise shall be carried out by the Assessing Officer / TPO after granting the opportunity of hearing to the assessee. 7. In the result, ground raised by the assessee for exclusion of Infosys BPO is allowed for statistical purposes. Capgemeni Business Services India Ltd: 8. The next comparable is Capgemeni Business Services Ltd. In this regard, our attention was drawn to the order passed by the DRP/TPO by the learned AR for the assessee. The basic argument of the learned AR is that this company is not comparable with the assessee as it fails on the RPT filter applied by the TPO. It is the submission of the learned AR that the related party transaction of the company with its AE exceeds 25% and was 82.32%. Therefore, this company cannot be treated as a goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a good comparable. He relied upon the decision of Hyundai India Motors (P) Ltd in this regard for the above said proposition. 12. Per contra, the learned DR relied upon the order passed by the lower authorities. 13. We have heard the rival arguments made by both the sides, perused the orders of the AO and the learned DRP and the Paper Book filed by the assessee in detail in the case of Informed Technologies India (P) Ltd. In our view, the grievance of non-consideration of the financials by the TPO are not available as the said financials have been examined by the DRP before which the assessee has preferred this appeal. Nonetheless, the short grievance before is that the Informed Technologies Ltd is deriving revenue from ITES business and is not deriving income from software development. In our view, this is a factual finding which required examination of facts by the lower authorities and therefore, we deem it proper to remand this issue of inclusion of Informed Technologies to the file of TPO with a direction to find out from the record, whether Informed Technologies Ltd derives its revenue only from the BPO or not. Besides that, the learned TPO is also directed to examine th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee as it is into software development and is deriving revenue from call centre. However, the above said aspect has not been examined by the lower authorities. Therefore, we deem it appropriate to remand back this issue to the file of the TPO/Assessing Officer with a direction to examine the financials of the Jindal Intellicom Ltd and whether this comparable is with the assessee or not. Further, the TPO is directed to find out after using its power as available under the law whether this company is earning revenue from the software development services or not. 20. In the light of the above discussions, the TP ground raised by the assessee are decided. It is made it clear that the TPO shall include inclusion/exclusion after affording reasonable opportunity of being heard to the assessee and pass a speaking order considering the decisions of the Tribunal / Judicial High Courts in this regard. 21. The last ground raised before us is on interest delayed receivable. In this regard out attention was drawn to page 816 of the paper book wherein the DRP had issued directions to the TPO which reads as under: "in the light of above discussions and the above referred we judicial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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