DCIT, Circle-1(1), Pune Vs. A.G.S. Customer Services (India) Private Limited
Parties Involved
Facts Summary
The case involves appeals by the Revenue against the orders of the Commissioner of Income Tax (Appeals) pertaining to the assessment years 2010-11 and 2011-12. The assessee, A.G.S. Customer Services (India) Private Limited, is a subsidiary of AGSPL, Singapore, engaged in providing administrative support services to its associate enterprise in India. The case was selected for scrutiny under the Computer Assisted Scrutiny System (CASS). The Assessing Officer referred the matter to the Transfer Pricing Officer (TPO) who made an upward adjustment for Information Technology Enabled Services (ITES) and notional interest on outstanding receivables. The Commissioner of Income Tax (Appeals) deleted the upward Transfer Pricing adjustment, which the Revenue appealed against. The assessee filed cross-objections supporting the Commissioner's decision.…
Decision in favour of
Partly Assessee / Partly Revenue
Legal Issues
- 1. Whether the learned CIT(A) erred in deleting the TP adjustment by excluding valid comparables selected by the TPO and including companies rejected by the TPO, without proper appreciation of functional comparability, turnover, risk profile and other relevant filters under TNMM.
- 2. Whether the learned CIT(A) erred in applying an arbitrary turnover filter (10x) to exclude otherwise appropriate comparables like TCS, E-serve, Accentia and Infosys BPO, ignoring settled judicial principles that size alone does not warrant exclusion if functional comparability exists under TNMM.
Judgment Outcome
Decided in favour of Partly Assessee / Partly Revenue.
Precedents Relied Upon
1 precedent cited in this judgement.
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