CIT Vs. AGNITY INDIA TECHNOLOGIES PVT LTD

JUDGEMENT

(1.) This appeal by the Revenue, which pertains to the assessment year 2006-07, in the case of Agnity India Technologies Pvt. Ltd. raises a short issue. The respondent-assessee is a wholly owned subsidiary of Bay Packets Inc., USA and was/is engaged in the business of development of software for the parent company in the field of telecommunication.

(2.) The respondent had filed return of income on 30th November, 2006 declaring total income of Rs.8,31,720/-. As respondent-assessee had undertaken international transactions with "Associated Enterprise" details of which were mentioned in the tax audit report, the matter was referred to Transfer Pricing Officer (TPO) to determine the fair market value of the international transactions.

(3.) Before the TPO, the respondent-assessee was asked to re-work the list of comparables and the same was reduced to 20. TPO also directed inclusion of Infosys Technologies Ltd. in the said list. The TPO in the final analysis has taken the comparables as under:- <FRM>JUDGEMENT_1591_ILRDLH23_2013_1.html</FRM>