TP: Companies in production & sale of software products cannot be compared with those in development of software on contract basis

Brief of the Case ITAT Delhi held In the case of Avaya India (P) Ltd. vs. ACIT that a perusal of the annual report of company reveals that the said company has made income from sale of license to the tune of more than Rs.1 crore, which means the company is into production of software products which apparently cannot be a comparable to assessee dealing with contract software development and not into sale of any product. Therefore, we direct TPO/AO to exclude this company from the list of comparables. Facts of the Case The assessee, Avaya India Private Limited is a subsidiary in India of Avaya I...