The Tribunal held that if an extraordinary event had taken place by way of amalgamation, then that company could not be considered as a comparable. The company earned more that 25% of its revenue from related party transactions. The company could not be considered. The turnover of comparable company was 80 times more than the assessee, hence, the company could be considered in the list of comparables. (AY. 2015-16)
Entercoms Solutions P. Ltd. v. ACIT (2022)97 ITR 135 (Pune) (Trib)
S. 92C : Transfer pricing-Arm’s length price-Comparables-Business of Information Technology enabled services-Extraordinary event of amalgamation-Company to be excluded-Company earning income from associated enterprise-more than 25% of its total revenue-To be excluded-Company having very high turnover is to be excluded. [S. 144C(5)]