Document Fragment View

Matching Fragments

i. M/s. Tricom India Limited ii. M/s. Wipro BPO Limited The learned AR had pleaded for inclusion of the following companies in the list of comparables: 
               i.      M/s. Allsec Technologies Limited
               ii.     M/s. Mercury Outsourcing Limited
               iii.    M/s. Mapro Industries Limited
               iv.     M/s. Cosmic Global Limited
               v.      M/s. C. S. Software Enterprise Limited


Now we shall deal with each of them:


         (i)          M/s. Tricom India Limited: The learned
AR vehemently contended that entity M/s. Tricom India Limited., cannot be compared with the assessee company as it is functionally dissimilar. It is submitted that this company is engaged in in-
IT(TP)A No.442/Bang/2011& IT(TP)A No.444&445/Bang/2011 house development of software products that are used for service delivery and this has led to high profit margins. Even before TPO it was contended that the financial information pertaining to the financial year 2003-04 was not available in the public domain. Therefore this company cannot be compared with that of assessee company and reliance in this regard was placed on the following decision of the coordinate bench in the case of M/s.
"After the scheme of Arrangement and Reconstruction, the company is engaged in the providing the services in the information & Technology Enabled Services (ITES)/BPO : Transaction Processing to customers in overseas market."

IT(TP)A No.442/Bang/2011& IT(TP)A No.444&445/Bang/2011 The decision of the coordinate bench in the case of 24/7 customers cited supra is based on the functional dissimilarity i.e., the company is engaged in the development of software products. But the evidence on the record as stated above is contrary. Therefore the decision of the coordinate bench in the case of 24/7 Customer is per incuriam, as said decision was rendered by the coordinate bench without referring to any material on record in support of the conclusion that company is engaged in software development.

ii. Nucleus Net Soft and GIS Ltd: It was contended that it is a functionally different company as it is engaged in the development of software products. Thus it was submitted that this company cannot be compared with that of ITES company like that of assessee company. However we find that no material was filed before us establishing this fact. In the circumstances, we remand this issue back to the file of TPO/AO to examine whether the company is engaged in the software development. If it is found so, then to exclude it from the list of comparables.