Inclusions and exclusions of the comparable companies w.r.t Transfer Pricing.

Last updated: 11 January 2021

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This Income Tax Appellate Tribunal case concerns transfer pricing adjustments for the assessment year 2011-12. The assessee sought to exclude four comparable companies and include two others. However, during the hearing, the assessee withdrew their request regarding E-zest Solutions Ltd and Thinksoft Global Services Ltd. Therefore, the appeal now focuses on the exclusion of three comparable companies and the inclusion of one.

Court :
ITAT Bangalore

Brief :
The assessee has filed this appeal challenging the assessmentorder dated 23.12.2015 passed by the A.O. u/s 143(3) r.w.s 144C ofthe Income-tax Act,1961 ['the Act' for short] for assessment year2011-12 in pursuance of directions given by Ld. Dispute Resolution Panel (DRP).

Citation :
IT(TP)A No.314/Bang/2016

IN THE INCOME TAX APPELLATE TRIBUNAL
“C’’ BENCH: BANGALORE

BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND
SHRI B.R. BASKARAN, ACCOUNTANT MEMBER

IT(TP)A No.314/Bang/2016
Assessment Year: 2011-12

M/s. Meritor CVS India (P) Ltd.
Tower 1, IT Sector SEZ,
Mylasandra, Kengeri Hobli,
RVCE Post
Bangalore-560 059
PAN NO : AAFCM7571E
APPELLANT

Vs.

ITO Ward-4(1)(3)
Bangalore
RESPONDENT

Appellant by : Shri C. Ramesh, A.R.
Respondent by : Shri Pradeep Kumar, D.R.

Date of Hearing : 05.01.2021
Date of Pronouncement : 05.01.2021

O R D E R

PER B.R. BASKARAN, ACCOUNTANT MEMBER:

The assessee has filed this appeal challenging the assessmentorder dated 23.12.2015 passed by the A.O. u/s 143(3) r.w.s 144C ofthe Income-tax Act,1961 ['the Act' for short] for assessment year2011-12 in pursuance of directions given by Ld. Dispute Resolution Panel (DRP).

2. At the time of hearing, the Ld A.R advanced his arguments onlyin respect of Ground No.2 relating to Transfer Pricing adjustmentmade by the AO/TPO. In this ground, the assessee has soughtexclusion of four comparable companies and inclusion of twocomparable companies. However, at the time of hearing, the Ld A.Rsubmitted that he is not pressing for exclusion of E-zest SolutionsLtd and also not pressing for inclusion of Thinksoft Global ServicesLtd. Accordingly, the grounds relating to above said two companiesare dismissed as not pressed. Consequently, the assessee is seeking exclusion of three comparable companies and inclusion of one comparable company. The details of the same are discussed in the later part of this order.

To know more in details find the atatchment file

FAQ :

The main issue is the transfer pricing adjustment made by the Assessing Officer (AO) and the Transfer Pricing Officer (TPO), specifically concerning the inclusion and exclusion of comparable companies.

The assessee initially sought to exclude four comparable companies.

No, the assessee withdrew the request for the exclusion of E-zest Solutions Ltd.

The assessee initially sought to include two comparable companies.

No, the assessee withdrew the request for the inclusion of Thinksoft Global Services Ltd.

The appeal now focuses on the exclusion of three comparable companies and the inclusion of one comparable company.