Dismissing the appeal of the Revenue the Court held that the Assessee-company rendered software development services to its AE. Selected company was in business of software products and services. Since no segmental data was available, selected company was not a good comparable, selected company dealt in software product and high-end technical services which fell under umbrella of knowledge Process Outsourcing (KPO) services, said company had to be excluded from array of comparables to assessee. No substantial question of law. (AY. 2008-09)
PCIT v. Mentor Graphics (India) (P.) Ltd. (2023) 335 CTR 100 / 156 taxmann.com 268 (Delhi)(HC)
S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Comparables, functional similarity-Software products and services-Selected company dealt in software product and high-end technical services which fell under umbrella of knowledge Process Outsourcing (KPO) services, said company had to be excluded from array of comparables as assessee was rendering software development services-No substantial question of law.[S. 260A]