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TMI Blog2024 (9) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... anel, 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 information technology enabled services ("ITeS") to its Associated Enterprise (AE). For the A.Y. 2014-15, the assessee filed the return of income on 28/11/2014, declaring an income of Rs. 72,98,75,440/-. In view of the international transaction of provision of ITeS to the AEs, determination of Arm's Length Price ("ALP") was referred to the learned Transfer Pricing Officer ("Ld. TPO"). Ld. TPO by order dated 31/10/2017, suggested upward adjustment of Rs. 66,99,26,671/- in respect of ITeS and Rs. 4,16,08,479/- in respect of interest on receivab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 justified in excluding the same. In respect of the interest on receivables, Ld. DR submitted that interest on receivables is certainly an international transaction and notional interest has to be computed. 6. We have gone through the record in the light of the submissions made on either side. As a matter of fact, the suitability of the entity, namely, Infosys BPO Limited, to be compared with the assessee was considered, the company had been excluded in assessee's own case by DRP in A.Y. 2010-11,AY 2011-12 and AY 2013-14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, therefore it is not functionally comparable to the assessee. Hence he requested the bench to exclude MPS Limited from the list of comparable. With regard to the facts that no objection was raised by the assessee before the revenue authority, the Ld. AR submitted that during the preparation of Transfer Pricing Documentation, no relevant information was available to do a qualitative analysis.. Relying on the decision of ITAT Special Bench in the case of Quark Systems (P) Ltd. [2010] 38 SOT 307 (CHD.) (SB), the Ld. AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 of the claim of the assessee and make a de novo adjudication afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;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 falls income of less than 75% of the total operating revenue filter is not correct. Therefore, we remand this issue of comparability of this company to the TPO for reconsideration of the issue by considering only the operating revenue." Respectfully following the decision of co-ordinate bench of ITAT in case of Infor (India) Pvt. Ltd(Supra), we direct the Ld. AO to verify afresh and consider Informed Technologies Limited as a good comparable after providing an opportunity of being heard to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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