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Ensco Maritime Limited As Agent Of Mr. ... vs Dcit, Spl. Range [Alongwith Ita Nos. ... on 26 July, 2004

v) TS R Darshwa Limited This comparable has been selected by the Ld. Transfer Pricing Officer which is engaged in 3 segments such as registrar and transfer agent activity, records management activity and pay roll and trust fund activity. According to the Ld. Transfer Pricing Officer and Ld. Dispute Resolution Panel, this is a good comparable. However, the Ld. Authorised Representative submitted that this company is engaged in Share Registry Services and other support 69 B G Exploration & Production India Limited V DCIT ITA No 1170/Del/2015 DCIT V B G Exploration & Production India Limited ITA No 1581/Del/2015 AY 2010-11 services. Further as per annual report of the company, it is primarily engaged in provision of share registry and related financial services and therefore, cannot be compared with the Assessee, a captive market support service provider. It is also contended that company has earned a high profit margin of 41.86% during the FY 2009-10. The Ld. Authorised Representative placed reliance in this regard on the decision of Delhi ITAT in case of Microsoft Corporation India (P.) Ltd vs. DCIT, ITA 5766/Del/2011. We have carefully considered the rival contention and perused the balance sheet of the company, which is placed at page No. 155 - 196 of the paper book, which says that it is mainly engaged in the business of registrar and share transfer agent. At page No. 178 of the paper book the segment reporting shows that out of the total turnover of 20.07 lakhs, Rs. 11.94 Lacs of the turnover goes to the registry and share transfer agent business. The functions to be performed with respect to the registry and share transfer agent are altogether dissimilar to the functions to be performed by a procurement advisor like Assessee. It is also not the case of the revenue that only some of the segment of the comparable is required to be considered, but the Ld. Transfer Pricing Officer has considered the whole of the company as functionally comparable to the Assessee with which we disagree. Therefore, we direct the Ld. Transfer Pricing Officer/AO to exclude this comparable for being functionally dissimilar.
Income Tax Appellate Tribunal - Delhi Cites 45 - Cited by 136 - Full Document
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