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3 E-Infochips Ltd.
4 Evoke Technologies Pvt. Ltd.
5 ICRA Techno Analytics Ltd.
6 Infosys Ltd.
7 Larsen & Toubro Infotech Ltd.
8 Mindtree Ltd. (seg) 9 Persistent Systems & Solutions Ltd.
10 Persistent Systems Ltd.
11 R S Software (India) Ltd.
12 Sasken Communication Technologies Ltd.
13 Tata Elxsi Ltd. (seg) The TPO has worked out the adjusted mean margin of the comparables at 24.18% and thereafter had made the adjustment of ALP at Rs.20,08,18,017/-. It was the case of the assessee before us that after the direction issued by the DRP, four comparables remained, as under :
3. Persistent Systems Ltd. 22.84 21.80 Sasken Communication Technologies 24.13 24.68
4.

Ltd. 

         ARITHMETICAL MEAN                        22.53       21.75
 IT(TP)A.356 & 313/Bang/2016                                        Page - 6

It was the contention of the assessee before us that the assessee is seeking exclusion of Persistent Systems & Solutions Ltd, Persistent Systems Ltd and Sasken Communication Technologies Ltd, as these companies are not functionally comparable with that of the assessee.

06. On the other hand the Ld. DR relied upon the orders passed by the lower authorities, in support of his plea that these three companies should not be excluded from the list of comparables.
07. We have heard the rival contentions and perused the material on record. The assessee relies upon the decision of this Tribunal in the matter of Applied Materials India P. Ltd v. ACIT (73 taxmann.com 160), wherein the Tribunal after thoroughly examining the functional profile of the company had deleted these three comparables, namely, Persistent Systems Ltd, Persistent Systems and Solutions Ltd and Sasken Communication Technologies Ltd, to the following effect :

08. In view of the above, we are in agreement with the contention raised by the Ld AR. As we find that the functional profile of the assessee company is similar to that of Applied Materials India P. Ltd (supra), as that of Electronics for Imaging P. Ltd (supra) and no distinguishing feature was pointed out by the Ld. DR either in facts or in law, therefore following the decision of the coordinate bench, we hereby direct the exclusion of three companies namely, Persistent Systems Ltd, Persistent Systems and Solutions Ltd and Sasken Communication Technologies Ltd.