Lucid Software Functionally different. Pure software
Ltd Company deals with development service
software products provider. It is
considered
comparable as it
qualified all the
filters ... therein and Lucid
Software Ltd. As observed therein Lucid Software Ltd. company is
also involved in the development of software as compared to the
assessee
therein and Lucid Software
Ltd. As observed therein Lucid Software Ltd. company is also involved
in the development of software as compared to the assessee ... reveals that the application
software segment is engaged in the business of sale of software
products and software services. The assessee pointed out this
solutions, software consultancy and
design & development of software using latest technology and Bodhtree
is a specialist entity offering niche IT services in software engineering ... find that this company has been excluded from the
set of comparables for software development service companies in both
the aforesaid decisions cited
comparables although they are secret
comparables for which no data was otherwise available, they are not functionally
comparable and also have supernormal operating margin ... expenses towards imports of software services, evidencing
outsourcing of software services unlike the appellant company. Hence, it
is functionally not comparable and cannot be treated
company though
claimed that it is pure software service provider however, this company offered
software solutions, software development, consultancy and information
technology to various clients ... huge revenues from software products. It is also seen that the break up
of revenue from software services and software products is not
available
involved
in development of software product and trading in
software licenses has held that it cannot be a
comparable to a software development service provider ... various
subsegments of software development services only and
require employment of software engineers and retained
this company as a comparable for benchmarking
international transactions
final set of comparables for both segments as
under :-
5.4.1 Final set of 11 comparables for Software Devt.Services Segment.
IT(TP)A No.1280 ... models adopted by other software
service providers. The learned representative pleaded that a
regular software services provider could not be compared to a
company having
assessee's comparables. The comparables
selected by the TPO in the final set are as under :
" Comparables selected by the Appellant and their ... huge revenues from software products. It is also seen that
the break up of revenue from software services and software products is not
available
Selection of comparables - ITES segment
6. Not undertaking an objective comparative analysis and
interalia selecting the following companies as comparable to the
software services ... development of software and software products
since its inception'. The company consisting of STPI unit
engaged in development of software and software products
therein and Lucid
Software Ltd. As observed therein Lucid Software Ltd.
company is also involved in the development of software
as compared to the assessee ... software development segment, and (ii)
software product segment. The Assessee is a
pure software services provider and not a
software product developer. According
