Section 92C of the Income-tax Act, 1961 - Transfer pricing

IT/ILT :Where TPO made addition to assessee's ALP in respect of software development services, since four comparables selected by TPO failed filter of 25 per cent employee cost to revenues applied by TPO himself, impugned addition was to be set aside
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[2014] 52 taxmann.com 406 (Mumbai - Trib.)
IN THE ITAT MUMBAI BENCH 'K'
Ness Technologies (India) (P.) Ltd.
v.
Assistant Commissioner of Income-tax, CC-34, Mumbai*
R.C. SHARMA, ACCOUNTANT MEMBER
AND VIJAY PAL RAO, JUDICIAL MEMBER
IT APPEAL NO. 7016 (MUM.) OF 2012
[ASSESSMENT YEAR 2008-09]
SEPTEMBER  24, 2014
Section 92C of the Income-tax Act, 1961 - Transfer pricing - Computation of arm's length price (Comparables and adjustments) - Assessment year 2008-09 - Whether where addition was made to assessee's ALP in respect of software development services rendered to AE, in view of fact that four comparables selected by TPO failed filter of 25 per cent employee cost to revenues applied by TPO himself, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh - Held, yes [Para 8][Matter remanded/In favour of assessee]