Company cannot be treated as comparable due to unreliability of its financial data

Travelex India Pvt. Ltd. Vs DCIT (ITAT Mumbai)

Outcome: In favor of Assessee

Brief of assessee’s facts:

1. Travelex India (the assessee), a wholly owned subsidiary of Travelex Plc UK, was engaged in providing information technology enabled services (ITeS) to its AEs.

2. In order to benchmark the aforementioned transaction, the assessee chose TNMM as most appropriate method with OP/TC as profit level indicator. The assessee selected 20 companies as comparables with arithmetic mean of 9.93% against its margin earned at 16.04% and claimed its transaction at arm’s length.

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