OSI Systems Private Limited vs. Dy.Commissioner of Income Tax
Parties Involved
Facts Summary
OSI Systems Private Limited, a company engaged in the manufacture of optoelectronic components, provision of software services, provision of IT enabled services (ITeS), and distribution of medical equipment, filed an appeal against the assessment order dated 26/10/2018 for the assessment year 2014-15. The assessee had filed its return of income on 29/11/2013 declaring an income of Rs.14,35,91,640/-. The assessee carried out economic analysis and determined the margin at 17.95% for provision of software services and 20.25% for provision of IT enabled services. The Assessing Officer rejected the taxpayer’s TP study and proposed 13 comparables, which the assessee objected. The Dispute Resolution Panel (DRP) issued certain instructions, pursuant to which the assessment order was passed, revising the ALP adjustment. The assessee filed this appeal challenging the adjustment on 2 segments and the notional interest on trade receivables.…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the turnover filter of Rs.1 to Rs.200 crores is a relevant criteria for choosing companies as comparables in determining the ALP in Transfer Pricing cases.
- 2. Whether the notional interest on the trade receivables is covered in the definition of international transaction as defined under section 92B of the Act.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
4 precedents cited in this judgement.
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