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TMI Blog2024 (12) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... the question of suitability to include Infosys for the purpose of benchmark analysis in normal cases was considered by this court in Evalueserve.com (P.) Ltd. [ 2024 (11) TMI 319 - DELHI HIGH COURT ] this court had reiterated the earlier decision. - HON'BLE MR. JUSTICE VIBHU BAKHRU AND HON'BLE MS. JUSTICE SWARANA KANTA SHARMA For the Appellant Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC and with Mr. Abhishek Anand, Advocate For the Respondent Through: Mr. Harpreet Singh Ajmani and Mr. Priyam Bhatnagar, Advocates VIBHU BAKHRU, J. (ORAL) 1. The Revenue has filed the present appeal impugning the judgment and order dated 18.08.2017 passed by the learned Income Tax Appellate Tribunal (hereafter ITAT) in IT (TP) A No. 111/B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Services). The learned ITAT had examined the suitability of exclusion and inclusion of the entities as mentioned above for the purpose of bench marking the international transaction for determining the ALP. The TPO rejected the comparable entities as selected by the Assessee and had selected eight companies for determining the mean Profit Level Indicator (hereafter PLI) which wa selected as Operating Profit on Cost. 4. A tabular statement setting out the mean PLI as determined by the TPO is set out below: Sl. No. Company Name Unadjusted Margins FY 2010-11 1 Infosys BPO Ltd. 24.41% 2 Aditya Birla Minacs Worldwide Ltd. 23.86% 3 Microland Ltd. (both segments) 1.53% 4 Allsec Technologies Ltd. -16.63% 5 Accentia Technologies Ltd. 46.40% 6 Inform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was providing call centre services to its AE. 8. After examining the same, this court had concluded vide an order dated 23.07.2018, found that there was no infirmity with the decision of the learned ITAT in accepting the Assessee s appeal against inclusion of the aforementioned two entities as comparable for bench marking the international transaction. The issue whether a KPO could be considered as functionally similar to a business process outing was considered in some detail by this court in Rampgree Solutions (P.) Ltd. v. Commissioner of Income Tax: [2015] 60 taxmann.com 355 (Delhi). 9. This court thus issued a notice in the present appeal and confined the question whether Infosys BPO Ltd. was required to be excluded as a comparable ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reading of the decision of the Supreme Court that the batch appeals in that case were directed against the decision of the High Court refraining from examining the question of comparability of entities on the ground that the same did not constitute substantial question of law. In the aforesaid circumstances, the Supreme Court had clarified that the examination by this court with regard to the comparable entities were not excluded. The relevant extract of SAP Labs India Private Ltd. v. Income Tax Officer, Circle 6, Bangalore (supra) are set out below: 7. S/Shri Arvind P. Datar, Tarun Gulati, Percy Pardiwala, learned Senior Advocates and other learned counsel appearing on behalf of the respective assessees have vehemently submitted that once ..... X X X X Extracts X X X X X X X X Extracts X X X X
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