Held that Kals Information Systems Ltd.-KALS is engaged in development of software and software products. Pertinently, the CIT(A) has given a clear finding that there is no segmental information available in relation to software development and software products and, accordingly, directed its exclusion. ICRA Techno Analytics Ltd.-This company is engaged in a diverse range of IT Solution Services and it is not a full-fledged software development company. Thus, functionally different from the assessee. Tata Elxsi Ltd. The company provides niche services which is not comparable to the low-end SWD services rendered by the assessee. Tata Elxsi has also invested heavily in R&D activities and has expenses amounting to nearly 3 per cent of its sales, which demonstrates that the company is engaged in innovation of products and services. CIT(A)’s exclusion of the said companies ought to be upheld. Infosys Ltd.-Very high turnover for the year under consideration. It is a giant in the software development space while the assessee is a captive unit. The company also has high brand value and focusses on brand building which occasions the high profits. The company acts as an entrepreneur as against the assessee which is a captive unit. It also focusses heavily on R&D and, thus, the company is not comparable to the assessee. Persistent Systems Ltd.-This company is engaged in rendering outsourced product development as against software development services and is, thus, not comparable to the assessee. Further no break-up is available between sale of software services and sale of products. Also, extra-ordinary activity is observed for the current year and hence directed to be excluded. Accentia Technologies Ltd.-It is not only a provider of high-end services in the nature of KPO but is also engaged in the development of software products for the healthcare segment. Segmental details for its various activities are unavailable. It is an entrepreneurial & engaged in performing additional functions over and above routine functions by assuming high risks and developing intangible assets, which is unlike the functions performed and risks assumed by the assessee. Also, extra-ordinary activity is observed for the current year and hence directed to be excluded. E-Clerx Services Ltd.-It is a KPO service provider and mainly engaged in providing high-end services involving specialized knowledge and domain expertise in the financial services retail and manufacturing. Hence, cannot be compared with the assessee who is a low-end service provider to its AEs. Infosys BPO Ltd.-This company is functionally dissimilar as it has substantial brand value, owns intellectual property rights and is a market leader with brand value. Also, Infosys BPO enjoys huge brand value and has also made significant investments in creating intangibles and owns several intellectual properties. Therefore, Infosys BPO is not comparable to the assessee.  (AY. 2010-11)