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11. E-Zest Solutions Limited (Ground no.1.1 in assessee's CO). Ld. Sr. Counsel has contested the inclusion of this company as a comparable by the ld. CIT(A), by submitting that as with regard to the nature of services it can be seen that company is engaged in development of software products in addition to provision of niche services such as data engineering, digital commerce, cloud computing, business intelligence and mobility. Referring to the Draft Red Herring Prospectus (Copy available at Pg 96 of CC) filed by company with SEBI the ld. Sr. Counsel submitted that the same mentioned that the company is engaged in development of software products in addition to provision of niche services such as cloud computing, business intelligence and mobility. It was pointed out that the assessee, on the other hand is only engaged in provision of routine software services. It is submitted that specific characteristics of services provided by this company are altogether different from the characteristics of software services provided by the assessee and therefore, this company cannot be regarded as an appropriate comparable to the assessee. Reference was made to Rampgreen Solutions Pvt. Ltd. (supra) PCIT vs Open Solutions Software Services Pvt Ltd (supra); Omniglobe Information Technologies India Pvt. Ltd. (supra). Further reliance was placed on the decision in Motherson Sumi Infotech Limited vs. DCIT [ITA No. 1751/Del/2015] JCIT vs. Steria India P. Ltd., [ITA No. 511 & 512/Del/2016] Cadence Design Systems (I) Pvt. Ltd vs ACIT (ITA No. 6315/Del/2015) ACIT vs Mobileum (India) Pvt. Ltd. (ITA No. 945/Mum/2016) Clear 2 Pay India Pvt. Ltd. vs ITO (ITA No. 2788/Del/2017) ST-Ericsson India Private Limited (ITA 609/Del/2015) for AY 2010-11 (Delhi ITAT) Pune bench of ITAT in the Symphony Services Pune (P) Ltd. vs. ITO Ward 1(4), Pune [ITA No. 257(PN)/2013 and 3DPLM Software Solutions Ltd.v. Dy. CIT [2014] 42 taxmann.com 333. 11.1. It is further submitted that in the case of Aptiv Components India Private Limited (ITA No.1361/Del/2015) (Page no.1523-1525 of case law compilation vol III), E-Zest Solutions Limited was rejected as a comparable to a routine software service provider.

11.2. Ld. DR has contested the same by submitting that the revenue is from operation which is mainly software services. Presence of increase/decrease in stock is just 1.1% of total revenue and inventories. That the principal business of company is computer software development.

11.3. In regard to this comparable at outset we are of considered view that in the discussion in ground no. 2 we have reached a conclusion that assessee is captive service provider in VLSI design software focusing on designing and defining the ICs itself, while this company is established to be engaged in multifarious computing and software activity, including niche services and cloud based services. It holds inventory which establishes that it is not a mere software service providing company. The judicial precedents cited also support the contention of ld. Sr. Counsel that it has been consistently held that this company is not good comparable with captive service provider. Thus not being a good comparable same deserves to be taken rejected and accordingly the ground is sustained in favour of assessee.