9911796707
TMI Blog2024 (9) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... the list of comparable. The claim has been raised before us for the first time. Respectfully relying on the decision of Quark Systems (P) Ltd. [ 2009 (10) TMI 591 - ITAT, CHANDIGARH ] we hold that taxpayer is not estopped from pointing out that MPS Limited had wrongly been taken as comparable. While admitting the fresh claim of the assessee to include MPS Limited included in the comparable, we make no comments on merit except observing that assessee from record has shown its prima facie case. Further the claim may be examined by the Ld. AO. Therefore, we deem it fit and proper to remit the matter to the file of the Ld. AO for consideration ACE BPO Services Private Limited rejected by the revenue authority due the reason that, sufficient fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopt the same. Therefore this ground of the assessee is allowed in part. - Shri K. Narasimha Chary, Judicial Member And Shri Madhusudan Sawdia, Accountant Member For the Assessee : Shri K.C.Devdas,Mrudulata and Shri Kranthi, C.As. For the Revenue :: Shri Kumar Pranav, CIT-DR. ORDER PER MADHUSUDAN SAWDIA, A.M: This appeal is filed by M/s. S P Capital IQ (India) Private Limited, Hyderabad ( the assessee ) against the final assessment order of learned Assessing Officer ( Ld. AO ) dated 29/10/2018 passed as per the directions of Dispute Resolution Panel, Bengaluru ( Ld. DRP ), for the A.Y. 2014-15, u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 ( the Act ). 2. Facts of the case are that the assessee is engaged in providing informatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n their own case, is not comparable on functional dissimilarity. Therefore, he requested that, these comparables may be excluded from the list of comparables. 4. He also submitted that the assessee is praying for inclusion of two comparables, namely, ACE BPO Services Private Limited and Informed Technologies India Limited, which was excluded by the Revenue authorities. Apart from these two issues, assessee is challenging the computation of interest on outstanding receivables. 5. Ld. DR, heavily placed reliance on the orders of the Revenue authorities and submitted that in respect of the prayer of the Ld. AR to include two entities, the assessee failed to satisfy the Revenue authorities in respect of their functions and, therefore, they are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te benches of ITAT for the earlier assessment years, we deem it just and proper to exclude these three comparables for this year also. Accordingly we direct the Ld. AO to exclude these three comparables from the list for the purpose of working of profit level indicator( PLI ). 10. So far as, the suitability of the entity, namely, MPS Limited, to be compared with the assessee was considered, the Ld. AR submitted that MPS Limited is functionally dissimilar to the assessee . The Ld. AR brought our attention to the relevant portion of the annual report of MPS Limited (placed at Page no. 21 of the Annual Report , Page No. 377 of Annual Report Compilation Vol I), and submitted that MPS Limited is engaged in the business of e-publishing services, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the arm's length price after providing reasonable opportunity of being heard to the assessee. We order accordingly 11. Per contra the Ld. DR rely on the decisions of Ld. AO and opposed to exclude MPS Limited from the list of comparable. 12. We have heard the rival contention and also gone through the records in the light of the submissions made on either side. There is no dispute about the facts that no objection was raised by the assessee before the revenue authorities regarding the exclusion of MPS Limited from the list of comparable. The claim has been raised before us for the first time. Respectfully relying on the decision of coordinate special bench of Tribunal in the case of Quark Systems (P) Ltd. (Supra), we hold that tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to the inclusion of the entities, Informed Technologies Limited, which was rejected by the revenue authority due the reason that, this company was functionally different and had high non current investment. The Ld. AR submitted that, Informed Technologies Limited passes all the filters applied by the Ld. TPO and functionally comparable to the assessee. To justify their contention, the Ld. AR placed their reliance on the decision of coordinate bench of ITAT in case of Infor (India) Pvt. Ltd. (ITA No. 161 and 2307 /Hyd/2018) wherein it was held as under: 29. After hearing both the parties, we find that Informed Technologies Ltd is into ITeS and its entire revenue is from BPO services only. Therefore, factual findings of the DRP that it fall ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
