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6. Before us, the Ld. Authorized Representative of the assessee has submitted that the TPO has rejected the comparables selected by the

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assessee on the basis of wrong facts and assumption and solely on the ground of KPO and BPO as a criteria of functional comparability. The Ld. Authorized Representative has submitted that this issue of comparability of BPO and KPO and determination of arm's length price has been considered and decided by the Special Bench of this Tribunal vide its decision dated 7.03.2014 in the case of M/s Maersk Global Centres Vs. ACIT In ITA No. 7446/Mum/2012. The Special Bench has held that the potential comparables of ITES sector level can be selected by applying broad functional test at first stage and classification of ITES into low end BPO services and high end KPO services for comparability analysis would not be fair and proper. Thus the functional comparability of the assessee with the potential comparables should be based on actual nature of business activities and not on the nomenclature of KPO and BPO. The Ld. Authorized Representative then took us to the business profile of the assessee and submitted that the assessee is primarily engaged in providing engineering design support services to its AEs. The core EPC team of the AE closely work with the customer and the technology provider to convert the basic design into workable detailed design. In order to save on labour cost, portion of the low end design and drawing work is outsourced by the AE to the assessee. He has further submitted that the business profile of the six companies selected by the assessee as comparable is similar to the business of the assessee. The Ld. Authorized Representative has then referred the business description of INFOTECH from the annual report placed at page 737 of the paper book and submitted that the company is specialized in geospatial, engineering design and IT solutions. Its range of services include digitization of drawings and maps, photogrammetary, computer aided design/engineering (CAD/CAE), design and modelling repair development engineering etc. Thus the business

"It was submitted that assessee is primarily engaged in providing engineering design support services to its AE's. The AE's of the assessee are in the business of executing turnkey engineering, procurement and construction contracts (EPC) for customers. Since the AE's do not possess their own technology for building plants; they approach global players like Mitshibushi. KBR etc for licensing the basic design and technology.

The core EPC team of the AE closely work with the customer and the technology provider to convert the basic design into workable detailed design. In order to save on labour cost; portion of the low end design and drawing work is outsourced by the AE to the assessee. The employees of the assessee are largely draftsmen and CAD/CAM operators who convert the instructions provided by the core team into drawings. These drawings are checked and verified by the Core team of the AE; including the customer and the project managers appointed by the customer. The corrections suggested by the Core team are executed by EDTCIB and resubmitted to the Core team."