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TMI Blog2024 (9) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... ts i.e., text conversion and e- publishing which is functional different. Nucleus Net soft GIS Ltd company is also to be excluded on account of different business model, export revenue filter, extra ordinary events and segmental details. The assessee does not outsource work. Whereas this company has outsourced most of its business activities. Major operating expenses of Rs.1.04 crores are with regard to data processing charges. The company has a different business model than that of assessee.Further there is no extra ordinary event of amalgamation in the case of assessee. But this company had extra ordinary events. The scheme of amalgamation was approved by the Bombay High Court . Also the company has both IT and ITeS segments which are con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial on record. As far as Vishal Information Technologies Ltd. is concerned, on the business mode, we find that the employee cost of this company is 47.39% as against 47.39% of the assessee as per the following details:- Particulars Assessee (Amt. in Rs.) Comparable (Amt. in Rs.) Employee Cost 13,26,998 32,01,756 Total Cost 28,00,186 17,41,957 Employee Cost/Total Cost 47.39% 1.84% 8. The assessee does not outsource the work, while Vishal Information Technologies Ltd. has major operating expenses of Rs.11.49 crores towards Data entry charges and Vendor payments which comes to 75% of the total expenses as under:- Particulars Comparable (Amt. in Rs.) Data entry charges and vendor payments 11,49,14,563 Total operating expenses 15,35,64,263 Data ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e find that these companies are engaged in providing software development services as is evident from their annual reports available on pages 52 onwards and 64 onwards of the paper book. Thus these companies become functionally different. Insofar as WIPRO BPO Solutions Limited is concerned, we find that their turnover is eleven times greater than that of the assessee. This company having such a high brand value along with much higher turnover, in our considered opinion, has been rightly excluded by the ld. CIT(A). The last case being that of Airline Financial Support Services (I) Ltd. has 31.76% of the total service fees received from the controlled transactions with the related parties. This fact is evident from pages 62 of the paper book, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sults of the transferor company have been incorporated as per the disclosure given by the company. The figures given in the annual report are not comparable with those of the previous year. 17. The segmental details of the assessee company are available and the TPO has made adjustment to the arm s length price in the ITeS segment. In the case of the comparable, the company has both IT and ITeS segments which are considered by the company as one segment and the segmental details are not available. Therefore, this company is not comparable with assessee on this count also. 18. Accordingly, the above two comparables i.e., Nucleus Net Soft GIS Ltd. and Vishal Information Technologies Ltd. cannot be compared to the assessee company and be exclud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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