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Co. couldn't be rejected as comparable just because its sales reduced substantially in one year

November 21, 2018[2018] 99 156 (Delhi - Trib.)

IT/ILT: Where assessee-company was providing ITeS itself while comparable company outsourced significant part of its activities, they could not be compared

IT/ILT: Merely because assessee was carrying on its business of ITeS through different software tools, same would not make it non-comparable, if functions performed by comparable company was similar

IT/ILT: Where assessee-company, engaged in providing ITeS, had undertaken a process of continuous R&D, such activity would not make it not comparable when functions performed by comparable company were similar

IT/ILT: Where turnover of comparable was 30 times higher than turnover of assessee, they could not be comparables

IT/ILT: Even if comparable company provided services to single customer, unless it was shown that said buyer had controlled prices, this company was to be accepted as comparable

IT/ILT: Only because in one of years, sales of comparable company was less than INR 1 crore, said company cannot be rejected as comparable, if it is otherwise a functionally comparable company

IT/ILT: Where TPO had accepted comparable company in subsequent years even when there were losses incurred by said company, following principle consistency said comparable was to be included in list of comparables

IT/ILT: Non-utilization of assets or under-utilization thereof may be internal inefficiency built in comparable company; however, when it is functionally comparable, it cannot be rejected

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