Cherry Picking of Comparables Not Permissible – ITAT Clarifies TP Approach

Netradyne Technology India Pvt. Ltd. Vs. ITO (ITAT Bangalore)

Cherry Picking of Comparables Not Permissible – ITAT Clarifies TP Approach Assessee, a captive software development service provider for its US parent, reported international transactions of ₹39.35 crores in software development & ₹19.00 lakhs in software licence distribution. TPO rejected its TP study & adopted new comparables, selecting large companies like Infosys, Wipro, TCS, Mindtree, L&T Infotech, Tata Elxsi etc., despite Assessee’s small turnover. DRP confirmed.

Before Tribunal, Assessee

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