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Cit vs Agnity India Technologies Pvt Ltd on 10 July, 2013

It is further noticed that the Hon'ble Delhi High Court in CIT Vs. Agnity India Technologies (P.) Ltd. (2013 ) 219 Taxman 26 (Del) examined the comparability of Infosys Technologies 26 ITA No.240/Del/2015 from the angle of its inclusion or otherwise in the list of comparable of Agnity India Technologies, a captive unit providing ITES to its AE alone. In that case, the TPO treated three companies as comparable, namely, Satyam Computer Service Ltd., L&T Infotech Ltd. and Infosys Technologies. The DRP excluded Satyam Computer only. The Tribunal excluded only Infosys Technologies Ltd., by impliedly retaining L&T Infotech Ltd. as a good comparable. On appeal by the Revenue, the Honourable High Court upheld the Tribunal order excluding Infosys on the strength of certain relevant distinguishing features including its giantness in terms of sales, nature of work and other factors. Thus it follows that L&T Infotech Ltd., which is otherwise a vast company with much higher turnover, finally found the status of a comparable with a captive company providing ITES to its AE alone.
Delhi High Court Cites 0 - Cited by 219 - S Khanna - Full Document

Commissioner Of Income Tax-I vs M/S Cotton Naturals (I) Pvt. Ltd. on 27 March, 2015

In so far as the question of rate of interest is concerned, we find that this issue is no more res integra in view of the judgment of the Hon'ble jurisdictional High Court in the case of Cotton Naturals (I) Pvt. Ltd. (supra), in which it has been held that it is the currency in which the loan is to be repaid which determines the rate of interest and hence 50 ITA No.240/Del/2015 the prime lending rate should not be considered for determining the interest rate. Under such circumstances, we set aside the impugned order and remit the matter to the file of TPO/AO for a fresh determination of addition on account of transfer pricing adjustment towards interest not realized from its AE on the debts arising during the course of business in line with our above observations.
Delhi High Court Cites 13 - Cited by 142 - S Khanna - Full Document
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