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TMI Blog2024 (7) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act") Revenue filed this appeal. Assessee filed Cross Objections against the same. 2. Brief facts of the case are that Global Data Ltd. (Associated Enterprise of Assessee) is a premium business information publication and marketing company based in UK. It provides premium business information (databases and reports) output in UK and globally. Assessee provides contract Information Technology enabled Services (ITeS) to its Associated Enterprises (AEs), which includes business support services, data creation, content development in relation to content search and analysis provided by the AE to the various business units within the group, under an agreement for provision of ITeS was entered into between the assessee and its AE. 3. During the previous year relevant to the assessment year 2011-12, the international transactions that took place between the assessee and its AE was the provision of ITeS services, which the assessee benchmarked by adopting Transactional Net Margin Method (TNMM) as the Most Appropriate Method (MAM) and OP/OC as Profit Level Indicator (PLI). Assessee selected eight entities as comparables and worked out the margin at 16.88.%. Learned Transfer Pricing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such functions include building data models, forecasts and analytical tools; that the services rendered by the assessee are also described in schedule 2 of the agreement for services with AE; that these include market research, analysis and projections relating to all types of business information, collating and analyzing information regarding financial operations, collating and analyzing data etc., that all these are high end ITeS services which are classified as KPO services vide CBDT Notification No. 73/2013 as they fall under the category of business analytics, financial analytics and market research. Learned DR further argued that the learned DRP did not examine the services of the assessee in detail vis-a-vis other comparables and excluded five comparables on functional difference. 8. Learned DR further submitted that E-clerx Services Ltd., is also engaged in similar services as those rendered by the assessee which includes financial services and sales and marketing services, and that abnormal profits cannot be a criteria because in the averaging process, the effect is ironed out. Apart from this, there are no peculiar circumstances to exclude this entity. So also, in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be categorized as expert services to be compared with the services rendered by the employees of the above four comparable companies. He also placed reliance on the decisions rendered by the Co-ordinate Benched of the Tribunal in the cases of Cadence Design Systems (I) P. Ltd., vs. ACIT [2018] 93 taxmann.com 227 (Delhi - Trib.) and JCIT vs. Steria India Pvt. Ltd., in ITA No. 512 & 511/Del/2016, dated 17/11/2020 for the assessment years 2011-12. In the case of Cadence Design Systems (I) P. Ltd., (supra) all these four comparables were considered and found to be unsuitable for comparison with an entity performing the functions as those of the assessee, whereas in the case of Steria India Pvt. Ltd., (supra), E-clerx Services Ltd., and TCS EServe Ltd. were considered. 12. For all these reasons, he submitted that since the functions of the assessee vis-à-vis the functions of these four entities were thoroughly considered by the Co-ordinate Bench of the Tribunal in assessee's own case, it is not open now for the Revenue to contend that the learned DRP did not consider the functions of the assessee properly. 13. We have gone through the record in the light of the submissions made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elating to the products and services of the parties. 5.2. Distributing, selling, publishing, disseminating and providing access to information regarding financial operations and management, business and commercial operations and projections, financial status, credit-worthiness, consumer responses and management of businesses of all kinds and descriptions by whatever name this may be called. 5.3. Distributing, selling, publishing, disseminating and otherwise providing access to data including but not limited to market data, information and other inputs in relation to the financial services, financial money markets, investment services and other related activities." 14. Learned TPO, in his order, however, captured the functions of the assessee as under: "Functions performed: Global Data Ltd incorporated in October 2006 is a premium business information publication and marketing company based in the UK. Global Data provides premium business information (databases and reports) output in the UK and globally." 15. Basing on the above schedule, for the assessment year 2010-11, a Co-ordinate Bench of the Tribunal captured the functions performed by the assessee, as under: "There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances would become comparable in this year. Such an exercise, we are afraid, would amount to sitting in appeal over the factual findings of the Co-ordinate Bench of the Tribunal which is impermissible for us to exercise. The identical nature of the functions over a period of time would lead to the inference that the comparability factor also remains the same. 19. For this reason, we are of the considered opinion that factual consistency demands respect for the view taken by a Co-ordinate Bench of the Tribunal for the earlier assessment years in assessee's own case and, therefore, while respectfully following the same, we direct the learned Assessing Officer/learned TPO to exclude E-clerx Services Ltd., Acropetal Technologies Ltd., Infosys BPO Ltd. and TCS EServe Ltd., from the list of comparables. Accordingly, the Grounds of appeal of Revenue are dismissed. 20. In view of the submission made by the learned AR that in case of exclusion of E-clerx Services Ltd., Acropetal Technologies Ltd., Infosys BPO Ltd. and TCS EServe Ltd., from the list of comparables, any consideration of other comparables challenged by the Revenue remains academic only, we do not propose to adjudicate the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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