Case Law Details
Biesse Manufacturing Company Pvt. Ltd. Vs DCIT (ITAT Bangalore)
We have noticed that the turnover of the assessee company for software development segment was Rs. 4.56 crores and hence the assessee company falls in the category of companies having turnover of Rs. 1 to 200 crores. The coordinate bench in the case of Autodesk India Pvt. Ltd. has expressed the view that the companies having turnover of less than Rs.200 crores cannot be compared with the companies having turnover exceeding Rs.200 crores. Accordingly, we find merit in the submission of the assessee and accordingly direct the A.O. to exclude above said 6 companies from the list of comparable companies.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The assessee has filed this appeal challenging the assessment order dated 29.2.2016 passed for assessment year 2011-12 u/s 143(3) r.w.s 144C of the Act in pursuance of directions given by Ld. DRP.
2. Though the assessee has raised many grounds with regard to the Transfer pricing adjustment made by the AO/TPO in software development segment, at the time of hearing, the Ld. A.R. restricted his arguments with regard to exclusion of 6 comparable companies and inclusion of 3 comparable companies. Accordingly, all other grounds are rejected as not pressed.
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