{"id":62984,"date":"2026-07-30T16:18:35","date_gmt":"2026-07-30T10:48:35","guid":{"rendered":"https:\/\/itatonline.org\/digest\/metric-stream-infotech-india-p-ltd-v-asst-cit-2025-131-itr-310-trib\/"},"modified":"2026-07-30T16:33:03","modified_gmt":"2026-07-30T11:03:03","slug":"metric-stream-infotech-india-p-ltd-v-asst-cit-2025-131-itr-310-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/metric-stream-infotech-india-p-ltd-v-asst-cit-2025-131-itr-310-trib\/","title":{"rendered":"Metric Stream Infotech (India) P. Ltd v. Asst. CIT (2025) 131 ITR 310 (Bang.) (Trib.)"},"content":{"rendered":"<p class=\"font-claude-response-body\" style=\"margin: 0in; margin-bottom: .0001pt; text-align: justify; line-height: 150%;\"><span lang=\"EN-IN\" style=\"font-family: 'Verdana',sans-serif;\">The assessee, a wholly owned subsidiary providing software development and marketing support services, challenged the selection of comparables adopted for benchmarking both segments and the TPO&#8217;s denial of working capital adjustment, the additions having been made pursuant to the directions of the DRP. On appeal, the Tribunal held that the related-party transaction ratio must be computed consistently on an aggregate basis with a 15 per cent. filter, and since the DRP had proceeded only on a turnover filter without considering functional comparability, the matter was remitted for fresh adjudication; several comparables were remitted to the TPO for verification of segmental data, export revenue reliability, and functions, assets and risk analysis, with negative net worth alone held insufficient ground for exclusion, while one company was excluded as functionally dissimilar being an information technology enabled services provider and another was held functionally comparable having satisfied the export turnover filter; in the marketing support segment, since the DRP had not undertaken a company-wise functions, assets and risk analysis for comparables sought to be included or excluded by the assessee, the issue was remitted for fresh adjudication with the assessee directed to furnish supporting documents; working capital adjustment, having a bearing on net profit margin, was directed to be granted in line with OECD guidelines on broad comparability; and the AO was directed to verify and rectify the inadvertent wrong computation of the assessee&#8217;s total income pursuant to the pending rectification application. (AY.2017-18)<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 92C: Transfer pricing-Arm\u2019s length price-Avoidance of tax-International transaction-Selection of comparables-Related-party transactions ratio to be applied consistently on aggregate basis, 15 per cent. filter appropriate-Functionally different companies without segmental data to be re-verified-Companies with unreliable export data excluded-Negative net worth not a factor for rejection if functions, assets and risk analysis acceptable-Functionally similar companies satisfying export turnover filter to be included-Matter remitted for company-wise functions, assets and risk analysis-OECD guidelines to be followed for broad comparability-Working capital adjustment affecting net profit margin to be allowed-Inadvertent wrong reckoning by Assessing Officer-Rectification application pending-Assessing Officer directed to carry out rectification. [S.92CA, 154]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62984","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gnS","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62984"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62984\/revisions"}],"predecessor-version":[{"id":63012,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62984\/revisions\/63012"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}