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1 - 6 of 6 (0.23 seconds)Pr. Commissioner Of Income Tax-7 vs L'Oreal India Pvt. Ltd on 30 August, 2019
8. For exclusion of MPS Limited, the ld. AR of the assessee submits that
this comparable company is engaged in business of software development
and providing technology solution for publishing industry. MPS Limited
is professional expertise, having Caliber Professional employee who have
undertaken various research and development initiatives to develop end -
to- end cloud based publishing platform and solutions. This comparable
was rejected by TPO in A.Y. 2014-15 after considering the
submission/objection of assessee in its order dated 09.05.2017. The ld.
AR submits that Hon'ble Bombay High Court in PCIT vs. J.P. Morgan
Services Ltd. (ITA No.4/2017 & 170 of 2017) and in CIT vs. L'Oreal
India Pvt. Ltd. (ITA No. 1046/2012) and Mumbai Tribunal in assessee's
own case for A.Y. 2005-06 held that software development company
cannot be compare with low and back office service provider.
Voltas Ltd. vs Deputy Commissioner Of Income Tax. ... on 27 January, 1998
9.3 From the perusal of the annual report for the year ended 31/03/2014 of
the said comparable, we find from page 707 of the paper book that the said
comparable had incurred outsourcing cost of Rs. 1078.76 Crores which is
included under the head "miscellaneous expenses" which goes to prove that
it has got a different business model. From the various functions performed
by MPS Ltd., we find that the said comparable is predominantly in the
business of digital publishing which cannot be treated at par with ITeS
which is the case of the assessee in ITeS segment. In this regard, we find
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Maers k G lobal Servi ce Cen tres Ind ia Pvt. Ltd
that the reliance placed by the ld. AR on the Co-ordinate Bench decision of
Bangalore Tribunal in the case of Google (India) (P). Ltd., v. Dy DCIT
[2013] 29 taxmann.com 412/55 SOT 489 is well founded wherein it was
held as under:--
Section 92D in The Income Tax Act, 1961 [Entire Act]
Section 234B in The Income Tax Act, 1961 [Entire Act]
Section 234C in The Income Tax Act, 1961 [Entire Act]
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