Oakton Global Technology Services Centre (India) P. Ltd v ITO (2025) 131 ITR 418 (Hyd.)(Trib)
S. 92C: Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Selection of comparables-Companies included by assessee itself in final list, later sought to be excluded on functional difference/turnover filter-Functional similarity established-Turnover difference not sufficient for exclusion-Interest on outstanding receivables constitutes international transaction-Rate depends on currency of denomination-Remanded for reconsideration-Employees’ contribution to provident fund-Belated remittance not deductible even if paid before due date of filing return [S. 2(24)(x), 36(1)(va), 92CA, 139(1)]
The Tribunal upheld inclusion of two comparables, L and P, since both had been self-selected by the assessee in its own transfer pricing study and were functionally similar, turnover difference alone being insufficient for exclusion; remanded the interest adjustment on outstanding receivables to the TPO since the SBI prime lending rate was wrongly applied without ascertaining the currency of denomination; and upheld disallowance of belated remittance of employees’ PF contribution under section 36(1)(va), even though paid before the due date for filing the return. (AY 2012-13)
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