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a) Red Baron Integrated Services Pvt Ltd

b) Platinum Advertising Pvt Ltd

c) Majestic Research Services & Solutions Ltd

d) Cheil India Pvt Ltd

e) Lintas India Pvt Ltd

39. The Honourable DRP and the learned AO / TPO has erred in law and on facts in rejecting the following companies selected by the Assessee in its TP Documentation which are comparable to the Assessee:

a) MCI Management (India) Limited
b) Concept Public Relations India Limited
c) Kestone Integrated Marketing Services Private Limited (Segmental)

F.Year wise OP/OC (%) Wt. 

SI.No.          Company Name
                                                                       Average
                                          2016-17 2015-16    2014-15

 1       Goldmine Advertising Ltd.         5.71      6.12     5.21       5.68
 2       Ugam Solutions Pvt. Ltd.          6.72      7.88     14.06      9.55
         Focus Suites Solutions &          19.15     19.18    4.08      15.76

         Services Ltd.
 4       Axience Consulting Pvt. Ltd.      18.48     24.84    8.19      17.11
 5       Pressman Advertising Ltd          24.95     14.96    15.93     18.62
         Scarecrow Communications          12.10     21.21    27.34     19.53

         Ltd.
 7       Red Baron Integrated              34.04     18.63    23.86     25.31
         Services Pvt Ltd
 8       Lintas India Pvt. Ltd.            29.89     30.53    27.15     29.89
         Majestic Research Services &
 9                                         45.95     35.17    18.49     38.37
         Solutions Ltd.
 10      Platinum Advertising Pvt. Ltd.    39.72     73.49    53.93     55.67

 11      Cheil India Pvt. Ltd.             64.59     69.85    65.21     64.86




       35th Percentile                                            17.11


       Median                                                     19.53


       65th Percentile                                            29.89

28. The DRP confirmed the adjustment. Aggrieved the assessee is in appeal before the Tribunal.

29. The ld AR made a detailed written submission with regard to each of the comparables for which inclusion / exclusion is sought. The extract of the submissions are as given under -

Exclusions

1. Red Baron Integrated Services Private Limited ('Red Baron') It is submitted that Red Baron was engaged in the activity of specialized design services. The same is evident from the Annual Report given in page 182 of the Appeal set. It is observed that Red Baron is engaged in the business of branding and design activities for independent parties. Further, there was presence of materials consumed and significant branding expenses as part of its operations. This is not comparable to the activities performed by the Appellant who is in the segment involved, engaged in the business of sales facilitation and business support services.