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7. This company was selected by the assessee itself as comparable, however, before the Ld. CIT-(A) the assessee requested for its exclusion, which was rejected by the Ld. CIT-(A).

7.1 Before us, the learned counsel of the assessee filed a paper book containing pages 1 to 1070 and requested for exclusion of the above company from the final set of comparables. He referred to page 455 of the paper book and submitted that the company was engaged in providing data analytics process solution to global enterprise clients, which is a kind of knowledge process outsourcing (KPO) service and, thus functionally dissimilar to the assessee. He submitted that company has been categorized as 'KPO' in the case of Rampgreen Solutions Private Limited Vs. CIT (ITA No. 102/2015) for assessment year 2008- 09 and thus, cannot be compared with the assessee, which is akin to a Business Procees Outsourcing (BPO). According to the Ld. Counsel, during the year the company acquired 'Ignentica Travel Solutions Ltd.', which being the extraordinary event during the year, has impacted the PLI of the company. He further submitted that the company owns significant intangibles. The learned counsel further submitted that the company has been rejected as comparable in the assessee's own case for assessment year 2009-10.

"We are a Knowledge Process Outsourcing (KPO) company providing data analytics and data process solutions to some of the largest brands in the world. We are recognized experts in our chosen markets - Financial Services and Retail and Manufacturing - and you'll see that reflected in our client list and the accolades we regularly receive from industry forums.

We add value to our clients' businesses by providing a unique blend of consulting services and process outsourcing."

(Page 3 of Annual Report FY 2007-08) "Our services demonstrate our expertise. Pricing analytics, bundling optimization, content operations, sales and marketing support, product data management, revenue management and data analytics are some of our offerings to Retail and Manufacturing clients. To our Financial Services clients, we offer real-time capital markets, middle and back office support, portfolio risk management services and various critical data management services."

"30. Undisputedly, the taxpayer is a low end BPO rendering services as a captive service provider. Comparability of Eclerx has been examined by the coordinate Bench of the Tribunal in Macquarie Global Services (P.) Ltd. vs. DCIT (supra) for AY 2009-10- wherein it was ordered to be excluded as a comparable to the companies providing BPO / low end services / ITES having supernormal profit. Coordinate Bench of the Tribunal in Macquarie Global Services (P.) Ltd. vs. DCIT (supra) ordered to exclude Eclerx by returning following findings "24. We have perused the Annual report of this company, a copy of which s available on pages 494 onward of the paper book, It can be seen that it is a Knowledge Process Outsourcing (KPO) company providing data analytics and data process solutions to global clients. This company provides end to end support through trade lifecycle including trade confirmation, settlements, etc. It also provides sales and marketing support services to leading global manufacturing, retail, travel and leisure companies through its pricing and profitability services. From the above narration of the nature of business done by Eclerx Services Pvt. Ltd., it is overt that it, being a KPO company, is providing data process solutions to its clients, which activity is way different from that of the asses see company, which is basically of providing accounts payable services and general accounting services to its AEs alone. Not only that, this company has significant intangibles which its uses for the purposes of rendering KPO services. As the assessee is a captive unit rendering services to its AEs without any intangibles, there can be no comparison between the assessee and Eclerx Services Pvt. Ltd. We, therefore, order for the exclusion of this company from the final set of comparables. "

Coral Hub Limited.

9. Inclusion of this comparable was challenged by the assessee on the ground that working model of the company is outsourcing based and therefore it cannot be compared with the assessee. The Ld. CIT-(A) directed the AO/TPO to exclude the company with observation as under:

"6.4.2 As regards Coral Hubs Limited ("CORAL"), the appellant has stated that le employee cost of CORAL is only 4.39 percent of its operating cost and it has substantial vendor payments, hire charges etc. for Rs. 21.82 crores (i.e. 87 percent of its total expenditure) evidencing that the company has outsourced most part of its work and has not provided the services itself. The appellant has stated that the business model of CORAL is different from that of the appellant since the company outsources its work and therefore, is functionally dissimilar to the business undertaken by the appellant. The appellant has relied on the decision of the Hon hie ITAT in the case of Maersk Global Service Center India Private Limited (ITA No. 3774/MUM/2011) wherein it has been held that "48. Insofar as the cases of Tulsyan Technologies Limited and Vishal Information Technologies Limited are concerned, it is noticed from their annual accounts that these companies outsourced a considerable portion of their business. As the assessee carried out entire operations by itself, in our considered opinion, these two cases were rightly excluded " The appellant has also relied on the decision of the Hyderabad bench of Hon'ble ITAT in case of M/s Capital IQ Information Systems (India) Pvt. Ltd Vs DCIT (ITA No. 1961/Hyd/2011 and other case laws. Considering the facts of the case, I hold that Coral Hubs Limited is not a proper comparable as the business model of CORAL is different from that of the appellant. Accordingly, the AO/TPO is directed to exclude this company from the final set of comparables."