Company with very high operating margin can be included in list of comparable after proper justification/investigation

In the case of Allscripts (India) Private Ltd.vs. Dy. Commissioner of Income Tax,  ITAT Ahemdabad  held that for the purpose of find our comparable companies for transfer pricing, companies with very high operating margin can’t be selected as comparable companies without justification/investigation by AO as to why such companies is to be included in the list.

Facts of the case

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