Document Fragment View

Matching Fragments

20.19 On the contrary Ld.CIT DR placed reliance on orders passed by authorities below.

20.20 We have perused submissions advanced by both sides in light of records placed before us. 20.21 We note that this comparable was excluded by coordinate bench of this tribunal in case of LG Soft India(P.) Ltd. (supra) 20.22 We note that in case of LG soft India Pvt.Litd (supra), this comparable was excluded on the ground that it is functionally incomparable to the assessee on various counts. The company deals with software products and renders aftermarket service management services, integrated IT service management solution, business process management implementation services, cloud computing, consulting, enterprise integration, geographical information system and infrastructure management services. Despite rendering these diverse services, the segmental details of the various services and products are not available. The company's business segments are divided into service cluster, industrial cluster and telecom business. In the absence of segmental data being made available as regards the diverse services, it is not possible to determine whether the company passes the filters applied by the TPO. Therefore, the company ought to be excluded. Further, the company is a market leader and thus enjoys significant benefits on account of ownership of marketing intangibles, intellectual property rights and business rights. Also, in addition to the above, the company owns proprietary software products which are developed in-house. Accordingly, the Appellant submits that L&T is a product company having significant intangibles and is thus not comparable to captive software development service providers such as the Appellant who does not own any significant or non- routine intangibles. Further, L&T enjoys significant brand value. As a result of this high brand value, the company enjoys a high bargaining power in the market.