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12) Persistent Systems Ltd.

"17.1.1 This company was selected by the TPO as a comparable. The assessee objected to the inclusion of this company as a comparable for the reasons that this company being engaged in software product designing and analytic services, it is functionally different and further that segmental results are not available. The TPO rejected the assessee's objections on the ground that as per the Annual Report for the company for Financial Year 2007-08, it is mainly a software development company and as per the details furnished in reply to the notice under section 133(6) of the Act, software development constitutes 96% of its revenues. In this view of the matter, the Assessing Officer included this company i.e. Persistent Systems Ltd., in the list of comparables as it qualified the functionality criterion.

The learned Authorised Representative prays that in view of the above, this company i.e. Persistent Systems Ltd. be omitted from the list of comparables.

17.2 Per contra, the learned Departmental Representative support the action of the TPO in including this company in the list of comparables.

17.3 We have heard the rival submissions and perused and carefully considered the material on record. It is seen from the details on record that this company i.e. Persistent Systems Ltd., is engaged in product development and product design services while the assessee is a software development services provider. We find that, as submitted by the assessee, the segmental details are not given separately. Therefore, following the principle enunciated in the decision of the Mumbai Tribunal in the case of Telecordia Technologies India Pvt. Ltd. (supra) that in the absence of segmental details / information a company cannot be taken into account for comparability analysis, we hold that this company i.e. Persistent Systems Ltd. ought to be omitted from the set of comparables for the year under consideration. It is ordered accordingly.

11. Quintegra Solutions Ltd and other comparables :

For exclusion of Quintegra Solutions Ltd and Lucid Software Ltd on the basis of functional difference and for the exclusion of Infosys Technologies Ltd, Wipro Ltd (seg), Flextronics Software Systems Ltd (seg), Persistent Systems Ltd, Sasken Communication Technologies Ltd (Seg), Tata Elxsi Ltd (seg), iGate Global solutions Ltd (seg) and Mind tree Consulting Ltd on the basis of turn over filter, the assessee placed relied on the decision of the coordinate bench of this Tribunal in the case of M/s. Actiance India P. Ltd v.
(8) Infosys Technologies Ltd. 13149 crores.

We, therefore, direct that Flextronics Software Systems Ltd (seg), iGate Global Solutions Ltd (seg), Infosys Technologies Ltd, Mindtree Consulting Ltd, Persistent Systems Ltd, Sasken Communication Technologies Ltd, Tata Elxsi Ltd (seg) and Wipro Ltd, be excluded from the list of comparables."

14. Following the above order of the Tribunal ie M/s. Actiance India P. Ltd v. ITO for the assessment year 2007-08, we direct exclusion of Quintegra Solutions Ltd on the basis of functional difference and exclusion of Infosys Technologies Ltd, Wipro Ltd (seg), Flextronics Software Systems Ltd (seg), Persistent Systems Ltd, Sasken IT(TP)A.1102/Bang/2011 Page - 36 Communication Technologies Ltd (Seg), Tata Elxsi Ltd (seg), iGate Global solutions Ltd (seg) and Mind tree Consulting Ltd on the basis of turnover filter .