Name of the company
1 Akshay Software Technologies Ltd.
2 Indium Software (India) Ltd.
3 Maars Software international Ltd.
4 Quintegra Solutions ... both the provision of software services and sale of
software services. On the other hand assessee is engaged in Software
development services where the segmental
activities of the said
concern were not comparable to the assessee. While selecting the comparable
companies, functional comparability of the concerns is the first step ... said concern was
engaged in software development, trading of software licences and training
implementation activities apart from software development. Another contention
was raised that Thirdware
said concern's application software
segment is engaged in the development of software which can be
considered as comparable to the assessee company ... reveals that the application software
segment is engaged in the business of sale of software products
and software services. The assessee pointed out this
comparable company, it was found that overseas subsidiary companies
have acquired certain IP products and that the comparable is predominantly
engaged in the software development ... comparable. The
assessee objected to the inclusion of this company as a comparable for the
reason that this company being engaged in software product designing
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 ... Software Technologies
Ltd. in the final set of comparables.
INCLUSION OF COMPANY AS COMPARABLES TO SOFTWARE
DEVELOPMENT SERVICE SEGMENT
(E) Akshay Software Technologies
various comparables taken by the TPO she
submitted that those comparables differ in functions undertaken and risk
assumed. Referring to the comparable Geometric Software Solutions ... that the company recognises income from software sale,
software consultancy and software system services. The company is
developing software for marketing in domestic and international
comparable to software
development service business of the Appellant.
7. The total turnover of the software development service which may be
compared with Appellant ... recognized for technical
and software services. However, nature of these technical and software
services are different from the software development services provided by the
Appellant
functionally not comparable, Persistent Systems Limited should be excluded
from the list of comparable companies. The issue of non-comparable of
9
ITA No.1824 ... 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
accepting certain comparables
and/or in rejecting certain comparables while benchmarking the international
transactions relating to the Provision of software design and development
services ... Business Software India P. Ltd. (supra) held
that the said company was developing software products and was not purely/
mainly a software development service provider
software testing business, it has outgrown
independently in software testing business, it has outgrown
independently in software testing and awarded Automated
Software testing Services ... related to acceptance/rejection of certain comparables.
Accordingly, each comparable is discussed here under.
7.1 Lucid Software:
The ld.AR submitted that Hon‟ble ITAT
