Case Law Details
Optiva India Technologies Private Limited Vs DCIT (ITAT Pune)
A company cannot be considered as comparable because of exceptional financial results due to merger/demerger etc. The Hon’ble Delhi High Court in Ameriprise India Pvt Ltd [TS-875-HC-2016(DEL)-TP] has dismissed the Revenue’s appeal against the order passed by the Tribunal in which certain companies were excluded on account of extraordinary events. In view of the foregoing discussion, it is palpable that a company with extraordinary financial events of acquisition and merger/demerger occurring during the year, cannot be considered as comparable. Since Persistent Systems Ltd. underwent such extraordinary financial event during the year due to acquisition of CloudSquad Inc., we direct to exclude it from the list of comparables.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal by the assessee is directed against the final assessment order dated 10-10-2018 passed u/s.143(3) r.w.s.144C(13) of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2014-15.
2. The only issue raised in this appeal is against the transfer pricing addition of Rs.13,48,02,885/-.
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