Dismissing the appeal of the Revenue High Court held that companies earning revenue from software development services as well as sale of software products about which segmental information was not available, could not be accepted as comparables to assessee-company rendering software development services to AE. SLP of Revenue is dismissed. (AY. 2011-12, 2012-13)
PCIT v. Microsoft India (R&D) (P.) Ltd (2023) 456 ITR 251 /294 Taxman 342 (SC) Editorial : Microsoft India (R&D) (P.) Ltd v. Dy.CIT (2021) 431 ITR 483 / 197 DTR 409 / 318 CTR 654 /(2023) 153 taxmann.com 199 (Delhi)(HC), affirmed .
S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Sale of software-Comparables-Segmental information was not available-Cannot be accepted as comparable.