Tribunal held that where turnover of comparable companies was less than or more than 10 times turnover of assessee, these companies could not be considered as comparable companies. Companies in whose case there were losses in three previous financial years, these companies were to be excluded from list of comparables being persistent loss making companies. TPO rejected a company as comparable company applying export turnover filter of 75 per cent, and assessee contended that export income of said company as per financial statement was 79.6 per cent, matter was to be restored to TPO for fresh consideration. Substantial expenditure on R& D, matter remanded. As per retrospective amendment to section 92B w.e.f. 1-4-2002 deferred payment on receivables or any other debt arising during course of business is also included as an international transaction. (AY. 2014-15)
KBACE Technologies (P.) Ltd. v. Dy. CIT (2020) 185 ITD 164 (Bang.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Comparable-Companies whose turnover was less than or more than 10 times turnover of assessee could not be considered as comparable companies-Loss making companies in three financial years were to be excluded from list of comparables-Export filter turnover-Substantial expenditure on R &D-Matter remanded-As per retrospective amendment to section 92B w.e.f. 1-4-2002 deferred payment on receivables or any other debt arising during course of business was an international transaction. [S. 92B]