M/S EMC SOFTWARE AND SERVICES INDIA PRIVATE LIMITED ,BANGALORE vs. JOINT COMMISSIONER OF INCOME TAX SPECIAL RANGE-2 , BANGALORE

This appeal was earlier disposed of by the co-ordinate bench on 18-12-2019. Thereafter, the assessee filed a miscellaneous application, wherein certain mistakes apparent from record were pointed out. The co-ordinate bench disposed of the miscellaneous

In ground no.3(l), the assessee seeks inclusion of “I2T2 India Limited” as a comparable company. The Ld A.R submitted that this company is functionally comparable and passes all filters applied by TPO. He further submitted that the co-ordinate bench has examined this company in the case of LG Soft India P Ltd (IT(TP)A No.3122/Bang/2016 dated 28-05-2019) and has held it to be a good comparable for a captive software development service company.

We heard Ld D.R and perused the record. We notice that the co-ordinate bench has held in the case of LG Soft India P Ltd (supra) that M/s I2T2 India Limited is a good comparable for a captive software development company. The relevant observations made by the co-ordinate bench in the above said case are extracted below:- “11. The assessee seeks inclusion of T2T2 India Ltd. The Ld. A.R. submitted that this company is functionally comparable company. The TPO/DRP has rejected the same only for the reason that the detail of Related Party Transactions (RPT) was not disclosed in the Annual Report. The Ld. A.R. submitted that the above said company would have disclosed RPT transactions if any such transactions were available. Since no disclosure was made, it has to be concluded that there was not RPT transaction., Accordingly the Ld. A.R. submitted that there is no justification for excluding this company.

Accordingly, following the decision rendered by the co-ordinate bench in the case of M/s LG Soft India P Ltd (supra), we direct the TPO/AO for inclusion of the I2T2 India Ltd as a comparable company.

In ground no.8, the grievance of the assessee is that the AO has not granted credit of correct amount of advance tax, self assessment tax and TDS amounts. In ground no.9, the grievance of the assessee is that the AO has not granted credit of correct amount of Minimum Alternative Tax (MAT) u/s 115JAA of the Act.

We notice that the above said claims of the assessee require verification at the end of AO. Accordingly, we restore both the issues to the file of AO for examining the claim of the assessee and give credit of correct amount of claim by way of advance tax, self assessment tax, TDS amounts and MAT credit.