Assessee company was engaged in providing data collection, web services, information research and related support services to its associated enterprise. Tribunal excluded a comparable company selected by Transfer Pricing Officer on ground that said company was engaged into software products and medical transcription and, thus, this company being functionally different and also having extraordinary event during relevant year, could not be considered as comparable, a comparable company selected by Transfer Pricing Officer by observing that said company was engaged in different verticals and was working through outsourcing models, thus, being functionally different, could not be considered as comparable to assessee company, set of comparables by noticing that said company having gone through extraordinary events during relevant year, could not be considered as valid comparable. High Court affirmed the order of the Tribunal. (AY. 2008-09)
PCIT v. Corporate Executive Board India (P) Ltd. (2020) 274 Taxman 529 (P&HC) (HC)
S. 92C : Transfer pricing-Arm’s length price-Comparable-Functional similarity-Company engaged into software products and medical transcription, could not be accepted as comparable-Company engaged in different verticals and working through outsourcing models, could not be accepted as valid comparable-company having gone through extraordinary events during relevant year, could not be accepted as valid comparable.