Home › Tax Laws › PCIT v. Aptara Technology (P) Ltd. (2018) 303 CTR 805 / 168 DTR 14/( 2019) 410 ITR 100 (Bom) (HC).

PCIT v. Aptara Technology (P) Ltd. (2018) 303 CTR 805 / 168 DTR 14/( 2019) 410 ITR 100 (Bom) (HC).

S. 92C : Transfer pricing – Arms’ length price – Selection of comparables -Finding of fact by Tribunal that (i) the activities of the assessee and comparables are functionally different(ii) the extraordinary events such as merger/amalgamation would have an impact/effect on the profitability of comparable (iii) merely because both assessee and the comparable provide ITES services they do not become comparable, cannot be interfered, more particularly in the absence of the same being shown to be perverse-No question of law. [S. 260A]

On appeal, the High Court held that the following finding of fact by Tribunal cannot be interfered with:

  • That the activities of the assessee and comparable (AT Ltd) are functionally different and extra-ordinary events like merger / amalgamation would have an impact / effect on the profitability of comparable (AT Ltd);
  • Merely because both assessee and comparable provide ITES services, they do not become comparable as the nature of services provided, by use of information technology, is different
  • Not considering / excluding a comparable due to the reasons like comparables render different service (hence not a comparable) or adopts a different business model (hence to be excluded as comparable).( (AY. 2008-09).