|CORAM:||Jason P. Boaz (AM), P. Madhavi Devi (JM)|
|CATCH WORDS:||Turnover Filter|
|DATE:||December 31, 2014 (Date of pronouncement)|
|DATE:||January 7, 2015 (Date of publication)|
|FILE:||Click here to download the file in pdf format|
|Transfer Pricing: Comparables have to be excluded by the turnover filter without a FAR analysis being required to be conducted. The AO cannot rely on information obtained u/s 133(6)|
(i) In Genisys Integrating Systems (India) P. Ltd the Tribunal has held that turnover is an important filter which has to be adopted for determination of the ALP. The Tribunal has been consistently following the said decision. The FAR analysis would not alter the turnover of the company. In view of the same, we do not find it necessary to remand the issue of comparability of these companies to the AO/TPO for re-determination of the ALP. In view of the turnover being higher than Rs.200 crores in the case of the above companies, we direct the AO to exclude these companies from the list of comparables.
(ii) The TPO has drawn conclusions on the basis of information obtained by issue of notice u/s.133(6) of the Act. This information which was not available in public domain could not have been used by the TPO.