Case Law Details
CIT Vs GE India Business Services Pvt. Ltd. (Delhi High Court)
The Delhi High Court recently passed a judgment in a transfer pricing case involving GE India Business Services Pvt. Ltd. The appeal was against the order of the Income Tax Appellate Tribunal (ITAT) for the Assessment Year 2010-11. The key issue was the exclusion of four comparables by the Tribunal for benchmarking international transactions related to offshore outsourcing services provided by the taxpayer to its associated enterprises (AEs).
The appellant/revenue argued that the Tribunal wrongly excluded the comparables based on functional similarity with another entity, Rampgreen Solutions Pvt. Ltd. However, the Court disagreed, stating that the functional profile of the taxpayer was different from Rampgreen Solutions Pvt. Ltd. The Court also upheld the exclusion of comparables due to extraordinary events like amalgamation and acquisitions.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This is an appeal preferred by the appellant/revenue against the order dated 27.04.2018 passed by the Income Tax Appellate Tribunal [in short, “Tribunal”] concerning Assessment Year (AY) 2010-11.
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