Infor (India) Private Limited Vs DCIT (ITAT Hyderabad)
The appeal of Infor (India) Private Limited for AY 2016-17 arose from the assessment framed under sections 143(3) read with 144C(13), 143(3A) and 143(3B) of the Income-tax Act, 1961. The assessee challenged transfer-pricing adjustments concerning software development services, IT-enabled services, interest on AE receivables, management fees and consultancy fees, along with certain corporate-tax grounds. The Tribunal rejected the general/consequential grounds Nos. 1, 2, 24 and 25.
Following earlier orders, the Tribunal directed exclusion of Infosys Limited and Larsen & Toubro Infotech Limited because of their huge turnovers. Tata Elxsi Limited was excluded because of its various activities, including product design services and trading, with no relevant segmental information. Persistent Systems Limited was excluded for product development and lack of segmental details, while Thirdware Solutions Limited and Cybage Software Private Limited were excluded on functional differences and, in the case of Cybage, its abnormally high average margin.
Aspire Systems (India) Private Limited was also directed to be excluded because an amalgamation had taken place with effect from 1 April 2015, with the Tribunal relying on PCIT Vs. J.P.Morgan India (P) Ltd., (2019) 102 taxmann.com 335 (Bombay).
The assessee did not press its objections concerning Nihilent Limited and Inteq Software Private Limited. Regarding R.S. Software (India) Limited, the Tribunal directed verification of the availability of relevant segmental details and, if available, use of the corresponding software-development PLI. The issue concerning Infobeans Technologies Limited was remitted to the TPO for fresh adjudication. Cigniti Technologies Limited was also remitted for factual verification of its segmental details.
