S. 92C : Transfer pricing-Arm’s length price-Comparable-Software Development Services (SWD)-If a company is involved in more than one segment and no segmental information is made available then such a company cannot be taken as a comparable-If a company is engaged in a diverse range of IT Solution Services and it was not a full-fledged software development company then it should be excluded from comparability analysis for a software development service provider-If activities of selected company comprised of high-end hardware and software product and development activities, which differed from routine SWD activities, it should not be selected as comparable-If turnover of selected company was far higher than turnover of assessee and the said company was giant in software development and also had high brand value as compared to assessee, it should be excluded from comparable list-If selected company was engaged in rendering outsourced product development as against software development services, it was not comparable to assessee-ITes-If selected company was not only a provider of high-end services but was also engaged in development of software products for healthcare segment, and further owned significant intangibles, it should be excluded from comparable list-If selected company enjoyed huge brand value and had also made significant investments in creating intangibles and owned several intellectual properties as compared to assessee, it could not be selected as comparable. [S. 92CA]
First American (India) (P.) Ltd. v. DCIT (2022) 94 ITR 577 (Bang.) (Trib.)