Comparable having extraordinary financial event of M&A cannot be considered for TP analysis

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...