Held that since AO had applied lower turnover filter of Rs. 1 crore and rejected companies with turnover of less than Rs. 1 crore from the list of comparable companies, he ought to have excluded companies with high turnover from the list of comparable companies (companies having turnover of Rs. 200 crores and above). Thus, taking a consistent view, the AO/TPO should consider the comparables in both ITS and ITes segments having turnover of 1-200 crores and decide the issue accordingly. (AY. 2016-17)
Cenduit (India) Services (P.) Ltd. v. DCIT (2022) 94 ITR 377 (Bang.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Comparable-Turnover-When the AO had applied lower turnover filter of Rs. 1 crore and rejected companies with turnover less than Rs. 1 crore from list of comparable companies, he ought to have excluded companies with high turnover from list of comparable companies, i.e., companies having turnover of Rs. 200 crores and above as well. [S.92CA]