DCIT, CIRCLE- 8(1), NEW DELHI vs. E.I. DUPONT INDIA P. LTD., GURGAON

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA No. 6879/Del/2017 (Assessment Year: 2008-09) Corteva Agriscience India Pvt Ltd Vs. DCIT, (earlier known as E.I. DuPont P. Circle-11(1), Ltd), 17th Floor, Tower-C, DLF New Delhi Cyber Greens, Sector-25A, Phase-3, Gurgaon (Appellant) (Respondent) PAN: AAACE2462M

ITA No. 7454/Del/2017 (Assessment Year: 2008-09) DCIT, Vs. Corteva Agriscience India Circle-11(1), Pvt Ltd (earlier known as E.I. DuPont P. Ltd), 17th New Delhi Floor, Tower-C, DLF Cyber Greens, Sector-25A, Phase-3, Gurgaon (Appellant) (Respondent) PAN: AAACE2462M Assessee by : Shri Deepak Chopra, Adv Shri Harpreet Singh Ajmani, Adv Shri Pulkit Pandey, Adv Revenue by: Shri Chetan Rao, CIT DR Date of Hearing 25/09/2024 Date of pronouncement 19/12/2024

O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.6879/Del/2017 filed by the assessee and ITA No. 7454/Del/2017 filed by the revenue for AY 2008-09, arise out of the order of the Commissioner of Income Tax (Appeals)-44, New Delhi [hereinafter

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referred to as ‗ld. CIT(A)‘, in short] in Appeal No. 61/2012-13/CIT(A)-44 dated 29.09.2017 against the order of assessment passed u/s 144C/143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‗the Act‘) dated 24.01.2012 by the Assessing Officer, DCIT, Circle-11 (1), New Delhi (hereinafter referred to as ‗ld. AO‘).

―General Grounds 1) The Ld. CIT(A) erred in law and on facts in not holding the order of the Learned Assessing Officer ("AO") being bad in law, illegal and without jurisdiction. 2) Grounds for Transfer Pricing Adjustment made to Administrative Support Services ("IGS") availed by the Appellant from its Associated Enterprises (AES) 3.1 That the Ld. CIT(A) erred in law and on facts in giving only 30% relief on account of adjustment with respect to Product Technical and Marketing Services, Business Support Services ("IGS") and no relief with respect to Accounting and Financial Services and Legal Services availed by the Company from its Associated Enterprises (AES). 3.2 The Ld. CIT(A) erred in law and on facts in disregarding the Rule of Consistency. 3.3 The Ld. CIT(A) failed to appreciate the fact that the Company is not guided by any motive to evade taxes and has in accordance with the provisions of the Income Tax Act adequately deducted taxes from payments made to AE's for services availed. 3.4 The Ld. CIT(A) erred in law and on facts in accepting the CUP method as used by the Ld. TPO as the Most Appropriate Method instead of the TNMM method adopted by the Appellant. The Ld. CIT(A) has also erred in not accepting the alternate CUP analysis provided by the Appellant. 3.5 The Ld. CIT(A) erred in law and on facts in not accepting the impugned services at arm's length since the business segments wherein their cost is allocated have been held at arm's length by the Ld. TPΟ.

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3) Grounds for Transfer Pricing Adjustment made to Provision of Administrative Support Services Segment 4.1 The Ld. TPO erred in law in rejecting the valid transfer pricing analysis carried on by the Appellant Company. 4.2 The Ld. CIT(A) erred in facts and in law in considering the related party filter at 25% of the sales as a suitable filter for identifying comparable companies. 4.3 The Ld. CIT(A) erred in facts and in law in considering India Cements Capital Limited as comparable although this Company has been rejected by the Ld. TPO in his order and is not functionally comparable also. 4.4 The Ld. CIT(A) erred in not adjudicating on reason for rejecting Rites Ltd. and WAPCOS Ltd. as being Government Companies and functionally not comparable. 4.5 The Ld. CIT(A) erred in facts and in law in not considering Alka Broking Limited as comparable. 4.6 The Ld. CIT(A) erred in not adjudicating on allowing the Appellant with risk and other adjustments to arrive at true comparability. 4) Grounds for Transfer Pricing Adjustment made to Provision of Research and Engineering Support Services Segment 5.1 The Ld. TPO erred in law in rejecting the valid transfer pricing analysis carried on by the Appellant Company. 5.2 The Ld. CIT(A) erred in facts and in law in considering the related party filter at 25% of the sales as a suitable filter for identifying comparable companies. 5.3 The Ld. CIT(A) erred in facts and in law in not considering IDC India Limited as comparable. 5.4 The Ld. CIT(A) erred in facts and in law in not considering Max Neeman Medical International Limited as comparable. 5.5 The Ld. CIT(A) erred in not adjudicating on reason for rejecting Mahindra Consulting Engineers Ltd. as being functionally not comparable and which largely caters domestic market.

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5.6 The Ld. CIT(A) erred in not adjudicating on allowing the Appellant with risk and other adjustments to arrive at true comparability.‖ 3. The revenue has raised the following grounds of appeal:-

―1. Ld. Commissioner of Income Tax (Appeals) erred on law and on the facts of the case in deleting the addition on account of "Sourcing/ Logistics/ HR services, Internal Audit, IT Services, Safety Business Services, Treasury Services, Technical and Marketing Services and Business Support Services" made by the TPΟ. 2. Ld. Commissioner of Income Tax (Appeals) erred on law and on the facts of the case in deleting the comparables in the segment of administrative and business support services using TNMM method". 3. Ld. Commissioner of Income Tax (Appeals) erred on law and on the facts of the case in deleting the comparables in the segment of research and development and engineering support services". 4. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing.‖ 4. The Ground No. 1 raised by the assessee is general in nature and does not require any specific adjudication.

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made towards administrative support services (intra group services ) availed by the assessee from its Associated Enterprises (AEs).

Method used by Value of transaction Nature of transaction Assessee (InlNR) CPP Manufacturing TNMM 732,919,870 Import of raw material • 183,509,889 Export of Finished Goods • 7,870,406 Payment of Royalty • EP Manufacturing 603,057,428 Import of Raw Materials TNMM • 46,841,066 Export of Finished Goods ♦ OC Manufacturing TNMM 207,959,932 • Import of Raw Materials Distribution of Finished Goods 3,266,946,037 Import of Finished Goods • 31,025,020 Export of Finished Goods TNMM • 269,583,169 Commission Income • 1,957,104 Commission Expense • Support Services Availed from TNMM 457,891,784 AEs Transfer of Business Unit CUP 40,612,560 Research and Engineering TNMM 111,493,809 Services Rendered 9. The international transaction which is in dispute before us is support services availed from AEs by the assessee for which it has paid Rs 45,78,91,784/-. The assessee had benchmarked this international transaction of availing support services from AEs by using Transactional Net Margin Page | 5

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Method (TNMM) as the Most Appropriate Method (MAM). The Profit Level Indicator adopted by the assessee was Operating Profit divided by Operating cost (OP / OC). The assessee had incurred administrative support services with mark up of 5% and the comparables chosen by the assessee in the Transfer Pricing Study Report (TPSR) (enclosed in Page 166 of Paper Book) had margins of 4.44% and accordingly the assessee claimed that the Intra Group Services (IGS) paid by the assessee to its AE to be at Arm‘s Length Price (ALP).

Nature of Charge Amount (INR) Treasury Charges 26,55,269 Services from Asia Pac DuPont companies 35,13,43,135 SAP Charges 6,32,62,401 Safety Consultancy& others 4,06,30,979 Total 45,78,91,784 11. From the above, the Learned TPO after going through the details submitted by the assessee decided to direct his attention to the payment for services to DuPont companies amounting to Rs 35,13,43,135/-.The various services received by the assessee from its AE are as under:-

a) Product Technical Services - These services include providing advisory services to the employees or the customers on product properties or process modifications for the entire gamut of product range that is being manufactured and sold by the company. With regard to product technical services, the Learned TPO observed that assessee has not been able to provide any evidence of the kind of technical services that it had obtained from its AE. The evidences submitted by the assessee are mere emails exchanged between the

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production managers in India and some technical personnel of the AE. Further, the emails produced before the Learned TPO were pertaining to assessment year 2010-11 whereas the year under consideration is assessment year 2009-09. Accordingly, the Learned TPO concluded that the assesssee had not discharged its basic onus that lies upon it. The Learned TPO in page 4 of his order observed that assessee had woken up to the need to maintain proper documentation in this regard only when the issue was raised in the course of the audit. This shows that the assessee is simply dictated by its AE and it does not carry out any sort of cost benefit analysis. This behavior of the assessee does not meet the arms length standard. That apart, these documents / emails give an impression that the Indian entity is independently carrying out its activities independently and the help that they are being rendered is of a very simple and nominal kind. The production activity would no way be hindered if these inputs were not received. The assessee had been asked to provide the details of the cost that the AE‘s bear on this account. The assessee has submitted the cost allocation that the AE sends it as evidence. Despite that, the Learned TPO observed that assessee has not been able to provide any proof whatsoever of the cost that the AE has incurred. The Learned TPO also observed that assessee has not been able to demonstrate that it actually needed the services that they were so vital that its production would have been hampered if they were not received. Hence, there is no need for the assessee to pay any amount towards product technical services to its AE.

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b) Marketing Services – These services include providing assistance towards development of marketing program, sales plans, sales forecasts, price and quantity targets, marketing strategies etc. Again, DuPont India can and does avail of these services for its entire business portfolio that it manages as an independent manufacturer and seller.

The Learned TPO observed that the assessee had submitted evidences in Annexures 1 to 7. On examination of those evidences, they are only routine email conversations between assessee and AEs marketing team and the emails show that inputs are flowing both ways and it is not as if the assessee alone is the beneficiary of those emails. The Learned TPO thereafter examined the detailed notes mentioned with regard to the marketing effort in respect of each segment such as Sales, Distribution & Marketing, EP Segment , Organic Chemicals Segment and Packaging Products Segment. On perusal of the same, the Learned TPO concluded that assessee is well equipped to meet its marketing needs and there is no need for the assessee to incur the payments towards marketing support services to its AEs. c) Finance Services – These services include providing assistance towards the company‘s accounting and financial operations. The AEs provide services that assist the Company in achieving operational efficiency that leads to overall cost optimization. The Learned TPO observed that the assessee had submitted evidences in Annexure 3. These include some emails , that propose schedules of audit, some audit reports concerning performance etc. The Learned TPO concluded that these services may at best be construed only as shareholder activities not requiring any payments to the AEs. Page | 8

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d) Business Services – These services include providing assistance towards facilities, human resources, safety standards, logistics, procurement and other advise on initiatives like expansion of through new ventures or product lines, advise on cost containment and advise on efficient use of resources etc. The Learned TPO observed that the assessee had submitted evidences in Annexures 1 to 7. The evidence consist of one power point presentation on SHE module and some travel advisories for different parts of the world. He concluded that these are routine services rendered by the AEs for which no payments are required to be made by the assessee to its AEs. d) Legal Services – These services include- a) Providing strategic advice to business / project managers and other internal clients that is creative and solution driven. b) Working on strategic real estate, global outsourcing, joint ventures , mergers and acquisition, divestures & varied international projects concerning DuPont India. c) Assisting the legal team in India to work with the business leaders & other internal clients to structure, prepare, negotiate and finalize agreements and letters of intent for regional and country sales, projects, marketing, consulting, procurement, sourcing, transition activities and product support activities. d) Assist in designing and supervising the compliance framework of DuPont India and reviewing legal compliance of DuPont India under various corporate, environmental, health & safety , industrial, factories & employment laws. e) Playing an active role in the development and training of Indian legal team. The Learned TPO observed that assessee had not produced any specific evidence to support the receipt of this service. He observed that assessee who is already spending sufficient amount under the head of legal and other consultancy charges can manage its affairs by itself and there is no need

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for availing the services from the AE and make payments there on to the AE . He observed that assessee has not been able to give a single instance of strategic advice that the AE has provided to the project managers or any assistance provided to the legal team to work with business leaders.

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support services paid by the assessee at Rs Nil by applying CUP method based on the following conclusions drawn by him :-

―1. The taxpayer‘s agreement with the associated enterprises related to intra group services is to be examined to see as to what kind of services were to be provided by the AE to the taxpayer. As normally such agreements refer to a large number of services which could be rendered by the AE . The taxpayer has to specify the service which is actually received by it for which the payment is made . 2. Whether the taxpayer really needed such services or not . If so, what direct or tangible benefit it has derived? 3. Contemporaneous information on the basis of which rate or payment for the service is determined . This includes the cost-benefit analysis done by the taxpayer at the time of entering into agreement . Whether any benchmarking analysis was done by the taxpayer so as to compare the amount which he would have paid to an independent person under similar circumstances . 4. Whether an independent person would have paid such amount in comparable circumstances 5. Whether the expected benefit commensurates with the payment 6. Whether the taxpayer has separately incurred any expenditure on similar services and if so the necessity of making further payment to the AE for the same activity or it is a duplicate payment 7. Whether the payment is in the nature of shareholders activity or largely for the benefit of the AE 8. Whether the AE is rendering such services to other AEs or independent parties and if so the rate / amount charged from such persons 9. The cost incurred by the AE for providing such services and the basis of allocation key 10. If the AE has charged any markup on such payments the arm's length margin is also examined.

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producing contemporaneous documentary evidence at the time of entering into agreement or at the time of availing the service( if actually availed), what benchmarking analysis was done, what cost benefit analysis was done, particularly when a huge payment has been made by it to the AEs. The learned TPO concluded that in arm's length situation, before availing any service, an independent person would consider the nature of services required by it and would make the payment which commensurates with the nature of service and expected benefit derived therefrom. Accordingly he concluded that irrespective of the need for those services from the AE, the payments were made even without ensuring whether the services per se have been rendered by the AE to the assessee and cost has been shared on the basis of cost allocation keys. Accordingly in concluding paragraph at para 7, the learned TPO held that he had applied CUP method to determine the ALP of international transaction of administrative support services and determined the ALP at Rs Nil as against Rs 35,13,43,135/- determined by the assessee.

S.No Regional . Service Description Billing Direct* Total Product Technical and 205,050,732 - 205,050,732 1. Marketing Services, Business Support Services Accounting and Financial 2. Services 45,08,4,578 45,084,578 Sourcing/ Logistics/ HR - 3. services 22,764,818 22,764,818 4. Internal Audit 2,666,051 2,666,051 5. IT Services 42,134,296 63,262,401 48,496,697 6. Legal services 3,255,241 - 3,255,241 7, Safety Business Services 26,380,057 40,630,979 67,011,036 8. Treasury Services 1,972,190 2,655,269 4,627,459 9. Engineering Services 2,035,171 2,035,171 351,343,134 457,891,784

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commercial or economic benefits derived by the assessee. The assessee furnished its rejoinder to the remand report vide letter dated 22-06- 2017 which is reproduced in pages 10 to 13 of the order of Learned CITA. Further, the assessee vide letter dated 6-09-2017 submitted the basis of cost allocation of administrative support services amounting to Rs 35,13,43,135/- to DuPont India from its AEs as a part of its business operations and in order to avail the internal skills and experience available . DuPont group has a system where in identified employees in each regional business / functional unit i.e. each company would also provide services to the other regional business / functional units (referred to as regional resource). Such regional resource has been assigned a cost center to capture their cost which include employees cost, travel cost, postage and other miscellaneous expenses. The total cost of cost centers is allocated to different entities on the basis of sales turnover for business related regional resource and percentage of time / effort for functions related regional resource. Such cost is increased by 5 percent markup while billing. It was submitted that details of regional resource, their role, cost incurred by these employees and their allocation to all the DuPont Asia Pacific entities are maintained in the internal database.

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taxation in most of the jurisdictions where the AEs resided were either equal to or higher than the rate of taxation in India. Hence, there was no question of shifting profits from India. The assessee had duly deducted withholding taxes on the said payments made to AEs. Further, the benefits derived by the assessee out of availing these services from AEs had been reflected in the form of increase in sales of the assessee. Further, the Advance Pricing Agreements (APAs) of the assessee‘s AEs showed with the tax authorities in Australia and New Zealand that the said authorities had held that the services were rendered at ALP. It was also submitted that the treatment given to the similar services in earlier years and subsequent years in tabular column are as under:-

Service from Asia A.Y. A.Y. 07-08 A.Y. 08-09 A.Y. 09-10 AY 10-11 A.Y. Pac Dupont Cos. 02.03.0 11-12 7 TPO TPO CIT(A) TPO TPO TPO TPO -Business Allowed Disallow Disallowed Disallowed Disallowed Disallowed Allowed Support & ances d Marketing other Services than Sourcing/ Allowed amount Disallowed Disallowed Disallowed Disallowed Allowed Logistics/ HR allocate d under - legal services Allowed Disallowed Disallowed Allowed Allowed Allowed CPP & Accounting and Allowed Disallowed Disallowed Disallowed Disallowed Allowed OC Financial services Segmen - internal Audit Allowed Allowed Disallowed Allowed Allowed Allowed t - IT Services Allowed Allowed Disallowed Allowed Allowed Allowed Safety Allowed Allowed Disallowed Allowed Allowed ' Allowed Business services Treasury Allowed Allowed Disallowed Allowed Allowed Allowed Services Product Allowed Allowed Disallowed Disallowed Disallowed Allowed Technical services

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

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were duly subjected to withholding tax by the assessee on the services rendered. Further, the Learned CITA took cognizance of the fact that the Learned TPO had accepted the contention of the assessee that six different segments among whom the cost of administrative support services availed by the assessee stood distributed are at ALP. It is also seen that product technical services form part of the marketing and business support services and the Tribunal in its order for assessment year 2007-08 had accepted that no adjustment was required on account of such services availed by the assessee. Accordingly, the Learned CITA granted deduction of 30 percent of the expenditure incurred under the head ‗marketing service and business support services and product technical services‘ and confirmed the balance sum. Aggrieved by this order, both the assessee as well as the revenue are in appeal before us.

Refer Paper book 1499 - 1507 Descrip Documents Submitted on S.No. tion of Type of Services Received How are these Services received Benefits Derived Cost Benefit Analysis Sample Basis Service 1. Travel claim receipts are enclosed at Annexure 1.

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Guidance provided with respect to Employee selection and appraisals. Ta-Wei Fu is a Enabling Solution to qualified person and processing issues was Regional around processing of Technology Manager, NXT 85 (FREE FLOW having thorough Technical assistance provided to MODIFIED knowldege of the Technical and HR Services two Customers namely -Duflon GRADE),Tefzel* 280 proiducts and Fluoroflon with respect to and 2183 and Sample emails exchange with -Regular conference calls manuratured and the products supplied by DuPont compounding PTFE 7B DuPont employee describing -By personal visit to Mumbai and related process. India. with 0.16% Mos2 filler. his visit to India and Madurai and advise tollers and Having such a 2 Enabling solution to the undertaking performance DuPont Plants for operational resource on the rolls -Human resource related problems faced by the appraisal of one of the efficiencies. of DuPont India shall services like taking final propsective and/or employee is enclosed at -Regular Exchange of e-mails. be a highly costly interviews, designing roles and existing customers as Annexure 2. affair. During the FY responsibilties, undertaking well as employees of 2007-08 approx. an appraisal etc. DuPont India. amount of USD He was also responsible 20,508/- was charged for providing to DuPont India neceessary guidance which is approx. 6.43 with respect to setting % of his total cost. up a debulking station at DuPont India's processing site in Madurai.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

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Enabling solution to the problems faced by the Steve J Burns has propsective and/or graduated from existing customers and Science and had bringing into new joined DuPont in products to meet the 1980. He is a Six 1. Email exchange of the Product Technical Services demands of prospective Sigma Champion and employees within the Group customers. The car the Product Manager is enclosed at Annexure 7. industry in India is for Performance Support on Product and colour By way of regular teleconference, highly dynamic and Coating Business for issues and development of new 2. Presentation on India Color 7 email based activity and personal customers may have entire AP Region. products to meet customer Issues is enclosed at visits. there own chice of Availing services of demands in Car Industry Annexure 7. colours. The experience such a senior and of Steve enbales the seasoned person for 3. Summary of a conference DuPont India to meets a paltry sum of USD call is enclosed at Annexure 7. its customers demands 37,925/-, which is and resolve issues if any approx. 9.22 % of his helpign India business total cost, shall be not only retain cost effective at any customers but create time. new ones.

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- Ensure that all functional groups develop tactics and measurable objectives that support the implementation of the buy, make, deliver, strategies. - Accountable for the supply plan from the global & regional supply chain planners in the region that provide production estimates to contract manufacturers against which orders are filled. - Reviews performance versus mutually acceptable standards in the arenas of safety, occupational health, environmental control and waste disposal, product quality, production rates, costs and shipping practices. Provide assistance in 1. Job Description of Mei Zhu upgrading in these Fang and Arshad Shafiq is arenas as needed. enclosed at Annexure 8. - Accountable for operations planning 2. Email exchange of the process for in and Mei Zhu Fang is a employees within the Group outputs such as qualified Engineer is enclosed at Annexure 8. production rates and had joined Support services estimates, unit DuPont in 1996. He is 3. Power point presentation Page | 26 By way of advice, taking monthly consumption rates the Business Director on Zero Leak Kickoff Planning regional operation conferenc calls estimates, etc. to for the AP Region. prepared by Mei Zhu Fang Management of all the aspects and discussing the various facets ensure an effective and Availing services of and delievered during one of 8 relating to crop protection of their business line and accurate planning such a senior and the dashboard review meets business resolving their issues with giving process. seasoned person for is enclosed at Annexure 8.

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Soo Leng Chee and 3. Power point presentation his team have helped of DSR India Marketing Effort India Safety Business 2009 & 2010 is enclosed at Safety Business Services By way of advice to DuPont India generate additional Annexure 9. for its clents like Tata Chemicals business during the 4. Talking points of Mr. Simon Ltd. - Mithapur, Tata Steel Meeting Clients and Safety Consultancy Services FY 2008-09. DuPont Herriott representing DuPont Limited, HUL, Aditya Birla Group, Doing Case Study help 9 supporting DuPont Safety India was charged on safety before ONGC, a by way of drafting DSR India DuPont Safety Business Business in India only USD 7,173/- for Global Fortune 500 leader in marketing effort, by way of giving generate revenue. the services of such Oil & Gas E&P is enclosed at speech to prospective clients on an experienced Annexure 9. DuPont safety resources, person, which 5. Copy of Invoices raised on constitutes only 2% Tata Chemicals and Tata Steel of his total cost. during the FY 2008-09 is enclosed at Annexure 9. 6. Case Study done on DuPont Knowledge Centre at Hyderabad and HUL is enclosed at Annexure 9. 7. Meeting details of DSS India extended team meeting where Soo Leng Chee delivered speech on New DSS naming guidelines and marketing update is enclosed Page | 27 at Annexure 9.

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ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Accounting & Financial, IT and Business Support Services Se Young Oh is a 1. Email exchange of the qualfied person and employees within the Group enable the Indian sharing Training information team to implement -Enabling meeting the and tools to improve Demand demand/DRP expectations of the Planning is enclosed at Demand forecasting & training, Planning and Master customer by giving on Annexure 11. distribution planning, time Production time delivery of the 2. Email exchange within the scheduling through planned Scheduling process. By way of advice through products through employees of the DuPont design, supply & inventory Having such a conference calls and designing matching the demand- Group is enclosed at 11 planning tools; developing India resource on the rolls various templates specially for supply equations Annexure 11. BP model related to JDA. of DuPont India shall DuPont India -Enabling accurate 3. Errors file supplied by the Assistance on errors generated be a highly costly demand forecasting Indian couterpart for the through India specific JDA affair. Kindly note and meeting the solution is enclosed at system. that only approx 9% demand supply Annexure 11. of his cost (i.e. USD equations. 4. Power point presentation 7,129/-) has been developed by Se Young on charged to DuPont Savli MPS Workshop is India in the FY 2007- enclosed at Annexure 11. 08. Charles Weber is a 1. Power point presentation qualified person made to Vedanta to obtain having rich contract for providing safety Safety Business Services experience in the Enabling solution to the services is enclosed at By way of undertaking safety field of safety audits. problems faced by the Annexure 12. audits through personal visits. Availing services of Consultation and Support on propsective and/or 2. Power point presentation Additionally calls and exchange of such a senior and 12 development of safety culture in existing customers of on closing meeting with CGPL e-mails also happen between the seasoned person for DuPont India's clients. DuPont India customers and Tata Power shared by employees to share experience a paltry sum of USD and generating revenue Charles Weber is enclosed at and guidance. 8,340/-, which is for DuPont India. Annexure 12. approx. 10% of his 3. Working sheets for safety total cost, shall be audit of CGPL and Tata Power cost effective at any is enclosed at Annexure 12. time.

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ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Enabling provision of Frances G. expatriates in the most Pensabene is a APAC economical manner and global mobility 1. Email exchange with the also in compliance of manager and have a employees of DuPont India is -Regular conference calls and law. Each country has rich professional and enclosed at Annexure 14. exchange of e-mails. its laws to deal with the working experience -Developing various policies for HR Services expatriates in relation in the field of global 2. Expense report of his visit the safe and easy transition of Support on Global Expatriate to their social security, mobility. Availing to India is enclosed at 14 expatriates from home country to transfer. tax chargeability and services of such a Annexure 14. host country. migration. It always qualifed person for a -Frances G. Pensabene also made essential to have an paltry sum of USD 3. Power point presentations a personal visit to India to address expertise to deal with 5,829/-, which is on various policies drafted by the global mobility issues. such issues so that the approx. 8% of his him is also enclosed at Company can enjoy the total cost, shall be Annexure 14. real services of the cost effective at any expatriates. time. Jeffrey X Huang is a 1. Email exchange of the Accounting and Financial Services qualified person employees within the Group having rich and other supportings is experience in the enclosed at Annexure 15. planning function. Enable DuPont India to Availing services of 2. Copy of business reports of have the timely such a senior and supply network planning for Support on supply network -Monthly conference calls and availability of the seasoned person DPP Savli is enclosed at 15 planning (Kanban system for exchange of e-mails. inventory and shall be cost effective Annexure 15. Inventory planning) -Providing trainings consequent meeting at any time. Kindly the requirements of the note that the sales of 3. Copy of invitation for customers. Zytel has increased weekly review for fluff is from INR 66.16 Cr. in enclosed at Annexure 15. FY 2008-09 to INR 96.72 Cr. in FY 2010- 4. Training record of 11, a CAGR of participants for Zytel is 20.91%. enclosed at Annexure 15.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Joji Inoue is a senior Business Support Services qualified person and 1. Email describing his role is is part of core enclosed at Annexure 17. management team in -Regular conference calls and Starting up of DKC lab charge of technical Assistance on undertaking DKC 2. Project charter is also 17 personal visits on need basis. in most economical and consultation for DKC lab start up project enclosed at Annexure 17. -Regular Exchange of e-mails. efficient manner. lab project. Availing services of such a 3. Expense reports are senior and seasoned enclosed at Annexure 17. person shall be cost effective at any time.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

To hire an outside Gordon Yee the Senior Audit agency to carry out Consultant travelled to India 1. Report of DuPont India such investigation during February to March 2008 employee from Crop Business shall be a costly affair for investigating a few cases. For engaged in Ehics Violation who may not be rendering these serivces, the case is enclosed at Annexure The task of engaged full time. Investigating team may either 19. Investigating Team is to Moreover the travel or may even give advice probe into Potential company may not DuPont is very High on Ethics over Conference Calls / E-mails 2. DuPont's Code of Conduct Business Support Services violations of the DuPont prefer using an compliance and for this depending on the level of documentation to Code of Conduct by outside agency as it purposes DuPont has separate investigation required to be made substantiate the fact that the employees or involves sharing team investigating Ethics or the gravity of the matter. DuPont Group invests heavily contractors in Asia confidential Violation for USA / Canada, on Ethics Compliance is 19 Pacific entities of information with Europe/Middle East and Africa/ The team also keeps on updating enclosed at Annexure 19. DuPont. Such Outsiders which may LatinAmerica/ Mexico and Asia the DuPont Ethics charter from investigtion helps the jeopardise the Pacific. DuPont has its own time to time based on new cases 3. E-mail from Gordon Yee, organisation to know company's charter defined in relation to invetsigated. senior Audit Consultant the weak links in its reputation. Ethics. describing his role is enclosed system and help either Kindly note that a The cases scrutinsed are also at Annexure 19. remove them or take sum of USD 20,457/-, shared with all the employees in timely corrective action. which is approx. 15% the region whcih serve as 4. Details of Travel Plan of of his total cost, has guidance and lesson to Gordon Yee and team to India been charged to employees to refrain from being for investigating a case is DuPont India for his engaged in Ethics violation enclosed at Annexure 19. services in the FY incident. 2007-08.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Various tools have been developed at Asia Pacific level to gauge the Business Performance on various parameters. Having these tools developed and run Country Business for India alone is not Such services are received Managers get a feasible from cost 1. E-mail from Scott Nigel is through Monthly Conference calls perspective as to how perspective. enclosed at Annexure 20. taking place between the Country the business is doing in Financial Services Business managers and their other parts of the AP The business 2. Power Points Presentations Planning the Demand for teams from each of the countries region and what are the performances are which are shared on monhtly DuPont Performance Coating in Asia Pacific. challenges faced by reviewed on monthly 20 basis over conference calls Business in the entire Asia them. Infomration basis by senior sharing the busienss Pacific Region on Monthly Basis. Also there are regular e-mail sharing on the new leadership giving performances for each exchanges between business porjects, new business invaluable isngihts country in the region and the people and conference calls. It is strategies employed in into the business path forward is enclosed at not possible to create a record of one country proves to conditions prevailing Annexure 20. conference calls. be a valuable guidance in the region. The available free of cost. issues faced by various teams are discussed and an effort is made to resolve the same thoguugh mutual discussion and sharing of experience.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Conducting such Business Trainings from outside Business team gets agencies for useful insight into the Business Support Services employees at various Demand Planning Through workshops held at locations is neither Process and gets to gain regular intervals and also over feasible nor cost knowledge from the A power point presentation of conference calls. Those who may efficient. Moreover Training on Demand Planning wide and rich the workshop conducted in 21 not have been able to attend the company believes aspects of Business experience of the Shanghai is enclosed at workshops are educated in leveraging on the trainer. The hitches and Annexure 21. subsequently by there rich exeprience of its glitches faced in one supervisors. personnel in the area work as gudiing relvant field and factor for team in other develop people to areas. take key management decisions. Anita Ho possessee master degree in 1. Email exchange of the Improved services from management - employees within the Group KDC to its customers. information is enclosed at Annexure 22. IT Services Played role in import technology and has a Support on R&D IT for DKC, By way of advice and personal clearance lead time rich experience of 30 22 Evaluation and strategic plan for 2. Travel support sheet of one visit reduction, warehouse years in DuPont. GSS and S&D etc. of the associate of Anita Ho process optimisation Having such a providing the agenda of the and integrating key resource on the rolls travel is enclosed at Annexure customers. of DuPont India shall 22. be a highly costly affair.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

It helps DuPont in efficient operationalisation of shared services in India. Accounting, HR and Business Support Services It aslo helps DuPont India to finalising and have the HR related Fanny Li is a qualified Advisory services on services resolved and person and having a) Accounting guidance undertaken from a third By way of advice, audio good experience in b) Possibility of establishing party adminsitrator by discussions, training, virtual resolving HR related Email exchange of the share services in India sharing the 23 meetings and acting as a services. Having such employees within the Group c) Share service study and experiences. The coordinator for HR related a resource on the is enclosed at Annexure 23. vendor selection services enable DuPont services. rolls of DuPont India d) Operation efficiency study to have a proper check shall be a highly e) HR Functions on the efforts put in by costly affair. various support people performing staff functions for the group for the correct allocations and correct recording within the group.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Toshimitsu Human resource is one Yamaguchi is a of the essential pillar of qualified person and the organisation. They having good can deliver their best experience in human 1. Email exchange of the only when the relation. Having such employees within the Group People development and career By way advice and interaction employer will a resource on the is enclosed at Annexure 24. HR Services planning process facilitation, through audio meetings, sharing understand their needs rolls of DuPont India people review meeting 24 templates & four quadrants and endeavour to feel shall be a highly 2. Four Quadrant Personnel facilitation and promotion or process etc. with the Indian HR them. This results in costly affair. Availing Planning Model and draft annual compensation process team higher productivity for services of such a template as provided by facilitation the company and lesser qualifed person for a Toshimitsu is enclosed at attrition rates sum of USD 31,375/-, Annexure 24. contributing to which is approx. 10% fulfillment of long term of his total cost, shall goals. be cost effective at any time.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Setting up of India's COFP and BPO Hub at Hyderabad has supported the P&IP CSR Centralisation project, streamline the P&IP back end processes as well, handling many Chris Y K Han is the global processes such Asia Pacific P&IP Business Support & HR Services as Finance and commodity business Sourcing, impressive as well as commerical transition management manager. He has the Support India's commodity, process - training, overall responsibility ensure proper supply to meet By way advice, interaction with quality metrics and to Email exchange of the to set up the service 25 the demand, accountable for the Indian HR team and through ensure qulaity employees within the Group hub at Hyderabad setting up India's COFP and BPO personal visit as well performances and is enclosed at Annexure 25. alongwith the Indian Hub for P&IP business continuous team. Having such a improvement. it has resource on the rolls also resulted in higher of DuPont India shall customer satisfaction be a highly costly through provision of affair. update information as and when required. Higher customer satisfaction results in higher revenues and more mouth-to-mouth pubilicty of the company's products.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Helped India to develop FSOP import and export manuals, Helped India to establish NC (nonconformance) metrics and Y S Choi is a qualified communication Financial Services Consulting service around person and having process, Helped India import and export operations, By way advice and interaction good experience in team by providing Email exchange of the import and export compliance through audio meetings, sharing logistics. Having such 26 training materials on employees within the Group program, ITL (International templates etc. with the Indian a resource on the Incoterms, payment is enclosed at Annexure 26. Trade Logistics) network, AP team rolls of DuPont India terms, Insurance claim ocean/air modal shall be a highly process, FSOP, FTA costly affair. program, duty drawback, etc. Helped India to utilize global ocean/air contract rates by leading AP ocean/modal team

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Rosemary G F Ren Financial, Sourcing and Business Support role was black belt for AP SC and Operations DPT. Reduction in During the period, 1. Email exchange of the warehousing cost, her projects on AP employees within the Group improving efficiency, regional contract is enclosed at Annexure 27. Services reduction in inventory converters and 27 Warehousing Optimization By way of Blackbelt project and improving health of warehousing 2. Power point presentation inventory. Improving optimization are on AP Warehousing over all supply chain more concerned with Optimisation is enclosed at and service to India. Having such a Annexure 27. customers. resource on the rolls of DuPont India shall be a highly costly affair.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Taemyung Jung has educated in MS in Technology management from the University of New York. He has an 1. Email exchange of the experience of more employees within the Group than 18 years and is enclosed at Annexure 28. had a variety of roles Processing of complex in application 2. Copy of power point IT Services By way advice and interaction data in a meaningful development and presentation on AP RO#3 SAP Support in BizVAP through audio meetings, sharing and undertstandable project management. Implementation is enclosed at 28 implementation, AP RO#3 SAP templates, meetings etc. with the format and Having such a Annexure 28. Implementation etc. Indian IT team understanding the high resource on the rolls level design of the DB. of DuPont India shall 3. Copy of power point be a highly costly presentation on AP SAP affair. Availing Implementation - Leadership services of such a Team Meeting is enclosed at qualifed person for a Annexure 28. sum of USD 27,646/-, which is approx. 11% of his total cost, shall be cost effective at any time.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Kenichi Itakura is a qualified person and having good experience in having the new customers Due to negotiation with Marketing Services on board. Having Negotiation with car By way of negotiation, making Honda, Japan, the local 1. Email exchange of the such a resource on manufacturers headquatered in training manual for Indian auto approval from Honda in employees within the Group the rolls of DuPont Japan to get global product and makers and trip to India to meet India is also obtained. is enclosed at Annexure 29. 29 India shall be a highly system approval of DuPont makers or importers offices of This helps to have costly affair. Availing refinish paint. Develop training Japanese OEMs to get local higher revenues for the 2. Honda approval letter is services of such a manual for some car makers. product and sytem approval. DuPont India refinish enclosed at Annexure 29. qualifed person for a paint business. sum of USD 13,415/-, which is approx. 9% of his total cost, shall be cost effective at any time.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Manage security risk at operation sites such as process & manufacturing plants Business Support and Safety Services and non-operation sites 1. Sample e-mails which are such as offices, R&D or sent by Ken Chiu to all By way of advice on mumbai business centres. employees in AP Region Ken Chiu is a qualified bombing attack and responses, creating awareness about the Asia Pacific Security second party security audit - salvi Sharing of experiences mishappenings in the AP and Manager. Having Corporate and Operation plants, first party security audit of enables employees to other region is enclosed at 30 such a resource on services and Leadership all sites in India and training of be well prepared for Annexure 30. the rolls of DuPont country safety health and contingencies. The India shall be a highly environment (SHE) for country team also shares news 2. E-mail from Ken Chiu costly affair. security leader. on any untoward describing his roles and incident which may responsibilities is enclosed at have happened in any Annexure 30. country so that the employees may plan there travels accordingly. 1. Gather data relating to Manufacturing for the Savli factory and review this in Eddie Steele is a respect of SAP. qualified person 2. Train key personnel who having rich IT Services would be involved in the MFG experience in IT By way of ongoing support and Email exchange of the module for SAP. Efficient implemenation implementations. 31 advice and personal visit on need employees within the Group 3. Travelled to Mumbai to work of SAP in India. Having such a basis. is enclosed at Annexure 31. with selected members of the resource on the rolls SAP Group. of DuPont India shall 4. Work with India MFG Team in be a highly costly relation to scenario Testing in affair. preparation for SAP implementation.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Jeff Chan is a 1. Review and approval of qualified person and security request forms for SAP is AP SAP Security R3. leader. During the FY 2. Resolve security related IT Services Efficient control on the 2007-08, only an issues. Email exchange of the By way of ongoing support and usage of SAP, mitigation amount of $ 20,666 32 3. Coordinating SAP R3 Annual employees within the Group advices. of security issues was charged to India. access review. is enclosed at Annexure 32. relating to IT system. Having such a 4. SAP R2 access request resource on the rolls management. of DuPont India shall 5. SOD Management - mitigating be a highly costly control update. affair. Martin F Mills is a qualified person and Availability of required is Asia Pacific Product human resource as and Stewardship and when required. Onboarding and management of Regulatory Business Support services DuPont India Product Competency leader. Development of Indian Stewardship and Regulatory Having such a -Sharing Brochures / PPT's on new human resource(s) and (PS&R) country expert resource on the rolls product offerings. there competencies. Email from Martin Mills employee, of DuPont India shall -Regular conference calls and describing his roles and 33 be a highly costly personal visits on need basis. The Indian employees responsibilites is enclosed at Consultation on India PS&R affair. Availing -Regular Exchange of e-mails. get an insight into the Annexure 33. issues and advocacy. services of such a -Visit to India. various issues beign qualifed person for a faced in other parts of Training and System meagre sum of USD the AP region and Improvement Services. 5,043/-, which is leverage on the approx. 5% of his learnings to handle total cost, shall be complex situations. cost effective at any time.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Peter J Skellern is an Engineer by Qualification and has graduated in the Field of Chemistry. He joined DuPont in 1995 and has handled a no.of porfolios over the years in DuPont. He is the Director of Marketing Services Corporate Marketing By sponsoring and attending Higher reach of the & Sales for Asia workshops (having facilitators products with the help Email from Peter describing Manage the Asia Pacific region Pacific. During the FY 34 from USA) with Indian team , of shared expertise, his roles and responsibilites is and give directions 2007-08, an amount carry out project reviews and lead resulting in increased enclosed at Annexure 34. of $ 12,836/- has the Indian leadership team revenue. been charged for his services. Having regard to the fact that such a senior person is available at all times to assist Indian Employees such a cost is very immaterial and hence cost effective from DuPont India's perspective.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Scott J Huf is the Regiona Herbicide Manager having rich Business Support services experience in the Scoping potential new field of herbicides. product entries into the Earnings optimisation for the During the FY 2007- Indian market and DuPont CPP business in India by By way of regular teleconference, 08, an amount of $ Email from Scott describing enable increased 35 way of Information exchanges email based activity and personal 5,876/- was charged his roles and responsibilites is market exposure for on present and potential visit to India for his enclosed at Annexure 35. rice, sugarcane and herbicide portfolio services which is very soyabean herbicide nominal having projects regard to the nature of services and gudiance received from Scott.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Shinichiro Nomura is a senior person who joined DuPont in 1987. He was Regional Six Sigma black belt for Accounting and Financial Services TLG/Marketing and Reduction in worked for AP warehousing cost, Inventory investment Inventory management - improving efficency, 2008 and AP 177 DCP Email received from improvement on GM/GMT and By way of Blackbelt project, reduction in inventory Reduction of Excess Shinichiro describing his roles 36 FP inventory reduction, DIBM tracking lead excess inventory, and improving health of Inventory in AP and responsibilities is process and ESOPT making RCCA etc. inventory. Improving projects meant for enclosed at Annexure 36. implementation over all supply chain DuPont India also. and service to Having such a customers. resource on the rolls of DuPont India shall be a highly costly affair. During the FY 2008-09, only a sum of $ 10,000/- was charged to India for his services.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Prasert qualified as Mechanical Engineer in 1981. He has been with DuPont since February 1997. There are overall 10 1. E-mail Exchange giving the participants from An extract from Agenda of Training and also Product Technical Services DuPont India who Regional Billing even requesting the attended this Training Database giving the Imparting knowledge with participants to fill up Product program. The aim of list of entities to respect to Refinish products and Training Survey so that he is Mr. Prasert (Regional Techncial such trainings is to whom cost has been their suitability to various better equipped to provide 37 Manager) travelled to India for impart latest insights charged and what geographies. On the spot the training is enclosed at imparting the training. into the world of proportion in the FY practical demostration of use of Annexure 37. Refinsh paint industry 2006-07 is enclosed products to repair damaged car. and to help DuPont at Annexure 37. Copy of Travel expense India serve their Report of Prasert is enclosed customers in a better Kindly note that a at Annexure 37. way. sum of US $ 23,548 has been charged for the services of such qualified person which is 12% of his total cost.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

It is abundantly clear that Internal Audit E-mail from Tina Garewal was conducted by (DuPont India's Internal Audit employees on Member) giving a Internal Regional Role. Had Audit Organisation Chart DuPont India clearly demostrating the fact An Audit was employed personnel that DuPont leverages on the conducted for checking Internal Audit Services of its own to carry skills internal resources to the effectiveness of out the Audit, it achieve business efficiencies The Internal Audit team travelled various controls Chiaprasert Malika was the part would have resulted is enclosed at Annexure 38. It to India in January 2007 and employed by DuPont of Internal Audit team which in significant may be noted that even Tina 38 issued an Audit Report. The copy with respect to Sales carried out Audit of Indian employee cost and Garewal's cost has been of Audit Report is enclosed at and Revenue Facility. related charged to various entities for Annexure 38. Generation activites at administrative cost. Audit Services rendered by Chennai office and with Availing services of her. An extract from RB respect to Inventory such a qualifed database is enclosed at Process at Savli Office. person for a sum of Annexure 38 for your ready USD 3,065/-, which is refrenece substantiating the approx. 3.5% of his fact that Tina Garewal's cost total cost, shall be was also charged to various cost effective at any entities. time.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Regular Conference Calls are conducted to discuss wharehouse Kyle Ahn, who is a Business management strategy Analyst, participates in and reporting Wharehouse Management Call of Accounting Services requirements. Such DuPont India. The objective is to discussions enable to review the MIS Reporting It may be noted that An e-mail confirming holding Advice on Wharehouse the businesses to requirements. The Business only an amount of $ of conference call and also 39 Management and Reporting to manage the inventory Analyst share various time to time 214 was charged to describing the agenda is ensure adequate controls lying in wharehouses. It which help the DuPont India in DuPont India. enclosed at Annexure 39. also results in better appreciation of facts and developing better take decisions for better formats to represent managemnt of inventory in the data in more whaehosue and related cost. meaningful way to assist imporved decision making. Extracts from Technical Product Technical Services Such material testing Service database wherein Materials are sent to ULSAN lab ( enables DuPont India to Material Testing requests are Having such a In South Korea) for testing and a ensure that its products placed by Indian employees is laboratory in India reqeust is generated in Database complies with the enclosed for consideration at Conducting Tests on Materials shall require 40 specifically created for the specific charectarisitc as Annexure 40. In the enclosed and maintenance of Database. additional investment purpose. The materials are duly may be required by documentation material and may not be cost tested as per request from Indian Customer and testing request has been efficient. DuPont India and reports issued. thus help generate raised for getting DuPont additional revenue. Products qualify for sale to Asahi India.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Since most of the products developed are highly technical in nature, it shall require additional skilled manforce to be employed which again shall depend on customer specifications. Jin Kim being a regional Marketing Services The emails contains resource was It helps DuPont India communication with India Based on Customer Specific responsible for business to generate sales rep to discuss about To develop new products based Requirements, new products are developing new 41 additional revenue sample roll preparation and on Customer Requirements. developed and sold to customers products for various upon satisfaction of specification to start in India by DuPont India. customers. Moreover customer requirments. qualification at customer is a existing product enclosed at Annexure 41. developed for one customer may require a slight modification to meet the requirments of another customer, Jin Kim being responsible for all these activites has the necessary skills and information to do the same.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

• Perform and review inventory costing and associated functions including value, quantity, and UTP/RTP reconciliation to ensure provision of accurate and timely costing of financial Generation of inventory. Customised Reports • Lead the Value Reconciliation helps business to process as the Process Owner concentrate on During the relevant for the Value Reconciliation analysing the Financial Year approx. process for the Cost and information to take $ 39,310/- has been Inventory team. The Process timely action to charged to DuPont Owner is responsible for manage Inventory Cost. Accounting and Financial Services India. It may be noted reviewing Value reconciliations Different Businesses that Erika Alanis has to ensure compliance with SOX may require different over 18 years of controls, train and assist team kind of reports for their experience and has E-mail from the employee members in resolving analysis purposes. been with DuPont for describing the experience of reconciliation issues. Exchange of Reports on Periodic Generating such 43 more than 9 years. the employee in handling • Lead the analysis, design and basis. reports from the Having such an various profiles is enclosed at provision of training for existing database may require experienced Annexure 43. and future staff of Inventory each business to have employee on the Accounting Centre. This includes an employee of their roles of DuPont India acting as a specialist for all other own to create such would certainly cost staff on day to day issues. reports for them. more than $ 39,310/- • Perform reconciliations in Having a regional and also shall bring in compliance with DuPont person do such a job additional internal control standards and shall provide economies administrative cost. Sarbanes Oxley legislation. in operation and allow • Participate in Cost & Inventory business to concentrate Six Sigma process improvement on other important projects to streamline / improve tasks. current processes. • Identify and develop continuous improvement opportunities within the Cost and Inventory accounting area. Page | 55

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Help in Business Business and Finance Support Services. Planning thorugh analysis of financial data and business Jason is a qualified trends in the Region. accountant and has Assistance in setting also done Black Belt E-mail from the employee By conducting regular Conference Profitability Objectives Six Sigma process. describing the experience of Calls and e-mail exchanges. 44 Strategic and Tactical Planning. for the business and Having such a the employee in handling Further services are even analyse variances if any. resource on the rolls various profiles is enclosed at available on Call. The regional business of DuPont India shall Annexure 44. folks inclduing DuPont be a highly costly India employees are affair. also educated on developing pricing strategies.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

The given service is Safety and Health is one provided by Woona of the core values of Choi or her DuPont India. Presence representative. She and adherence of these was the Safety Health values are very and Environment essential to have the coordinator for the By conducting regular Conference continuous services of Asia Pacific regions. Calls and e-mail exchanges. human. The regular Safety Services Having getting the Further services are even checks and sharing of safety audits done by Audit Reports of Savli plant Safety Health and Environment available on demand. Further, the global expertise on the 45 an independent visit is enclosed at Annexure Coordination Services service provider or his adoption and person is very 45. representative personally visits implementation of confidential and the plant sites to plug the these core values costly exercise and loopholes. enable the Company to thus, needs to be have lower recruitment duly compensated. cost and higher Kindly note a small employee satisfaction sum of USD 5,464 has resulting in achieving been charged for her long term goals of services to DuPont higher productivity. India.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

The Indian employees receive regular guidance from the leaders in AP region before undertaking any brand campaign / Business Support Services By conducting regular Conference Advertisement Activity. Roger Kant is the AP Calls and e-mail exchanges. DuPont group hs Technical Support An email correspondence Further services are even chalked out its own and Development between Indian employee Guidance as to how DuPont as a available on demand. Further, the guidelines of Do's and Manager and during and Roger Kant with respect 46 brand needs to be positioned in service provider or his Don'ts and Rules with the FY 2007-08, only to guidance on Brand the market. representative personally visits respect to Brand an amount of $ campaigning is enclosed at the plant sites to plug the Campaign which serves 6,820/- was charged Annexure 46. loopholes. as a guding principles to DuPont India. for DuPont Employees. The said rules and charter are regularly re- visited for necessary amendments and updations. Product Technical Services Enclosed at Annexure 47, the The said service has regional employee experience acted as a guidance as This shall result in of using the Tyvek product in to in what all sectors creating additional Japan for mulching and what Usage of product Tyvek for Guidance has been provided on the Tyvek (DuPont business 47 are the benefits and issues mulching of grapes the usage of Tyek. product) can be used opportunities and with respect to its usage. The and hence creating new hence additional employee has even shared business opportunities revenue. pictures as to how to use in India. Tyvek for mulching.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

The said services are available on Appropriate control of Uniform standard Business Support and Marketing Call. More often than not, the Email from the employee General Business Administration the business across enables uniform Indian Employees consult the describing the roles and 48 Supply Chain Planning region enabling uniform service, resulting in Regional Employees over call and responsibilties is enclosed at Marketing Services. standards and service higher client even seek guidance through e- Annexure 48. to the clients. satisfaction. Services mails. By way of advice to Getting on demand business/project managers & advice on legal other internal clients that is Satisfy strategic legal aspects enable the Emails from the employee is 49 General counselling services creative & solution driven, actual needs as and when Company to get going enclosed at Annexure 49. working on strategic real estate, required. in their business and global outsourcing etc., assisting carry on operations the legal team in India etc. without delay. Getting on demand Financial Services It enables better advice on Financial Enabling extraction of reports for reporting of Guidance as to the recording of aspects enable the Emails from the employee of carrying out analysis. Guiding on transactions for 50 transaction into the Company Company to get going the AE is enclosed at data entries based on the carrying out detailed SAP Accounting package. in their business and Annexure 50. information in YGLOBET. analysis on various carry on operations business aspects. without delay.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

John Quiney is qualified person and Ensure employees has a rich experience understanding of in ethical training. Business Support Services policies and procedures Having such a critical to achieving the resource on the rolls DuPont Core Value of Emails from the employee Business ethics & Compliance By way of Personal visit by the of DuPont India shall ethical behaviour. Help describing in detail the certification, Legal Eagle training service provider on need basis be a highly costly 51 achieve a strong activities carried out and Asia Pacific Core values and also through conference calls affair. Availing internal control benefiting Indian Business is Annual Refresher training and e-mail exchanges. services of such a environment and enclosed at Annexure 51. qualifed person for a execute company policy sum of USD 21,479/-, as required in the which is approx. 5% Annual Ethics Reporting of his total cost, shall procedure. be cost effective at any time.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Mark King is a qualified person and has more than 29 Processing of complex years of work Lead the Indian IT applications Emails from the employee of data in a meaningful experience with 54 team in implementing and By way of advice the AE is enclosed at and undertstandable DuPont. Having such supporting the SAP Systems Annexure 54. format a resource on the rolls of DuPont India shall be a highly costly affair. Huey Li Chan is a IT Services qualified accountant and has more than 14 years of work experience. Having such a resource on Assisting in the day to day Processing of complex the rolls of DuPont Emails from the employee of activities of the Asia Pacific Cost Providing procedures on how to data in a meaningful India shall be a highly 55 the AE is enclosed at and Inventory Accounting find the FICS imbalance. and undertstandable costly affair. Availing Annexure 55. Centre. format services of such a qualifed person for a sum of USD 6,914/-, which is approx. 10% of his total cost, shall be cost effective at any time.

ITA No. 6879/Del/2017 ITA No. 7454/Del/2017 Corteva Agriscience India Pvt Ltd

Ruth Pattison is a Specific projects undertaken like qualified person and 1. Upgrades of intranet and has more than 17 internet websites, Processing of complex Manage teams to deliver years of work Emails from the employee of 2. PVC Database - price value data in a meaningful 56 application support for Lotus experience. Having the AE is enclosed at capture utility used regionally and undertstandable Notes & SQL & Web Support such a resource on Annexure 56. 3. Data Mart Logistics LN Solution format the rolls of DuPont 4. CVC Distribution management India shall be a highly tool costly affair. Indian Employees are Enable the process of trained on various diversifying the Management and Emails, travelling expense India Marketing Competency business portfolio and By way of Personal visit by the Marketing tools to report and the power 57 Tracking using SMP and Pricing progress further in its service provider enhance their know presentation used is enclosed Marketing & IT Services Tools journey to reach the how to create at Annexure 57. Business Revenue business target opportunities. Getting on demand advice and related Emails from employees Through exchange of e-mails and resources enable the Prospective increase exchanging advertisements net meetings. Company to advertise in reveneue on one templates used in other 58 Guidance on advertising Regular conference mails. their products in a side and associated region which may be used for Travel on need basis. better manner and cost on the other. India as well is enclosed at On demand calls. attract prospective Annexure 58. clients resulting in increased revenues. Ensures Continuous supply of Zytel and Delrin Meeting Minutes of Business Support Services Worked closely with people in the Review the operation metrics of for supply of products to indian customers. This Conference calls wherein the 59 plants at Savli. Conduct monthly various products enables DuPont India to meet customers demand planning is discussed calls and meetings demand on time and help grow business. is enclosed at Annexure 59.

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A2 ledger is a tool used for India specific reporting as India has Shane Sims, Kay Nix financial year (April to and Helen Dazevedo Finance & IT Services By personal visit to resolve A2 March) reporting are qualified related issue in SAP, upgraded whereas other Australian CPAs and Help the Indian IT applications GP1 system from v4.0 to v4.6, Emails of the employee of the jurisdictional entities has worked for more 60 team in upgrading and update all training materials and AE is enclosed at Annexure within the DuPont than 15 years. Having supporting the SAP Systems train key users, design and 60. Group have calendar such a resource on develop new report for India year reporting. A2 the rolls of DuPont service tax etc. ledger was specifically, India shall be a highly thus, developed for costly affair. India to meet its reporting requirment.

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the aforesaid observations, we find that assessee is indeed entitled for making payment of administrative support service charges to its AEs and the same is hereby accepted to be at ALP in the facts and circumstances of the instant case.

“7. The assessee elaborated the benefits derived by it from the services rendered by the Nalco Pacific Pte Ltd., Singapore. The TPO has tabulated the benefits claimed to have been derived by the assessee and his Remarks on page 126 onwards of his order. For example, the first category is 'Finance and Accounting'. The assessee gave description of the benefits derived by it from such services in a structured manner catering to Expense claim Reimbursement system; Cash Collection & Credit Control Training; Expense Reimbursement System; Budgeting process and Timetable; India Business Contract and Tax Training; Training for Asia Pacific Sales Improvement so on and so forth. The assessee substantiated the receipt of such services with the help of corresponding e-mails and other documents. The TPO negatived the assessee's contention by simply holding that no direct benefit was received or these were duplicate services. Similar is the position qua other services, namely, 'WPS and water services' for which the assessee stated the benefit in the nature of Integrated Water Management Training Workshop; Integrated Water Management Presentation; Cost aspects of various units, Technical Water Treatment Proposal after site visit; Technical Audit report etc. The TPO rejected the assessee's claim again by holding that no direct benefit was received. Similar position prevailed for other services availed by the assessee from Nalco Pacific Pte Ltd., Singapore for which complete details, backed by the corresponding e-mails and other documents, were submitted that have been set out by the TPO in his order in the tabular form. All such contentions did not convince the TPO, who rejected the same by simply holding that no direct benefit was received. 8. On a careful perusal of the services received by the assessee from Nalco, USA and Nalco Pacific Pte Ltd., Singapore, it becomes abundantly clear that the services facilitated the carrying on the business operations by the assessee in a more efficient and effective manner by adhering to the international standards in a globally uniform manner.

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recipient or in other members of the controlled group or to facilitate compliance by the renderer with reporting, legal or regulatory requirements applicable specifically to the renderer, or both.' There was some debate as to whether the 'sole effect' language should be employed to brand any activity as a shareholder activity or it should be substituted with the 'primary effect'. In other words, if the primary effect of the activity or service is produced to the renderer company but some incidental effect also flows to the recipient company, then also it should be categorized as shareholder activity. After considering all the opinions, the Treasury Department and the IRS believed that : 'the "sole effect" language is appropriate.' It was noticed that : 'The "primary effect" language in the 2003 proposed regulations could inappropriately include activities that are not true shareholder activities and may even consist of substantial activities that are non-shareholder activities.' Thus, it explained: "Shareholder activities. -An activity is not considered to provide a benefit if the sole effect of that activity is either to protect the renderer's capital investment in the recipient or in other members of the controlled group, or to facilitate compliance by the renderer with reporting, legal, or regulatory requirements applicable specifically to the renderer, or both. Activities in the nature of day to day management generally do not relate to protection of the renderer's capital investment." Certain examples have been given for ascertaining whether or not an activity is a shareholder activity. Example 13, which is relevant in our context, is - 'Company X establishes detailed personnel policies for its subsidiaries, including Company Y. Company X also reviews and approves the performance appraisals of Company Y's executives, monitors levels of compensation paid to all Company Y personnel, and is involved in hiring and firing decisions regarding the senior executives of Company Y. Because this personnel-related activity by Company X involves day-to-day management of Company Y, this activity does not relate solely to Company X's role as an investor of capital or a shareholder of Company Y, and therefore does not constitute a shareholder activity.' Thus it emerges even from the USA Treasury Regulations that an activity will be considered as a shareholder activity if its 'sole effect' is either to protect the renderer's capital investment in the recipient etc. or to facilitate compliance by the renderer with its own reporting, legal, or regulatory requirements. It is further manifested that activities in the nature of day to day management cannot be considered as protection of the renderer's capital investment and hence they cease to be stewardship or shareholder activity. 11. We have noticed the description of services performed by Nalco, USA under the broader heads of Insurance & Risk Management; Treasury; Marketing; Credit and Collections; Operations Planning; Supply chain; Procurement; Safety, Health & Environmental; Information Technology; Customer service; Human resources etc. We have also noticed supra the portrayal of services performed by Nalco, Singapore under the broader

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heads of Commercial advice; Advice and technical assistance; Centralized financial planning services; Advice and assistance regarding budget control systems; Advice on the establishment and enhancement of computer systems; Advice and assistance with respect to the production planning; Advice on procurement of raw materials ; and Advice on Asia/Pacific risk analysis etc. It gets vivid on such a perusal that the services are in the nature of regular business services performed by the group entities with a view to enable the assessee to carry on its business operations, thereby causing effect on it. As such, these do not qualify as 'stewardship activities'. 12. …………………. 13. ………………… 14. Adverting to the facts of the instant case, we observe that the rendition of services by Nalco, USA and Nalco Pacific Pte Ltd., Singapore has given effect only to the assessee and has, in no manner, resulted in protecting the individual interests of such companies. All the services rendered by them facilitated the carrying on of the assessee's business. In such circumstances, we are satisfied that the reliance of the AO on the decision in Morgan Stanley & Co. (supra) is misconceived. We, therefore, accord our imprimatur to the conclusion drawn by the ld. CIT(A) that the services rendered by the two companies were in the nature of intra group services and not stewardship activity. 15. Ordinarily, after answering the character of the services, the next point would have been to determine the ALP of the intra group services. We have noticed above that the TPO determined Nil ALP by holding that the services provided by Nalco, USA and Nalco Pacific Pte Ltd., Singapore were in the nature of stewardship activity. The ld. CIT(A) overturned the TPO's view on this score and further held that the transacted value of the intra group services was at ALP, albeit without carrying out any analysis. The ground taken by the Revenue, as reproduced above, is confined only to challenging the decision of the ld. CIT(A) in construing the services as intra group services. There is no challenge to the decision of the ld. CIT(A) on the second aspect of the international transaction being at the ALP. We, therefore, refrain from going into the aspect of the ALP determination, for which no ground has been raised. In the ultimate analysis, the ground raised in the appeal is not allowed.‖

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21-3-2024 wherein it was held that where assessee had incurred expenses in respect of intra group services (IGS) to its AE and had submitted detailed break-up of such costs and rendering of services was an aspect which was neither questioned nor doubted, Tribunal was right in deleting adjustment on account of payment of IGS.

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rejected all the comparables chosen by the assessee and selected the following comparables as the final list:-

S, No Company Database Total income Service RPT(%) PBIT/Cost (Cr) income (%) (%) Mahindra Consulting 1 Engineers Ltd. PROWESS 5.04 99 15.56 28.96 2 Alphageo (India) Ltd. PROWESS 81.89 99.6 0 41.61 3 Stup Consultants Pvt Ltd. PROWESS 101.91 98.12 3.04 36.72 4 Semac Ltd. PROWESS 31.73 98.4 15 49.65 5 Mitcon Consultancy Services Ltd. PROWESS 21.1 93.69 0 41.21 Kirloskar Consul CAPTAUN 6 10.92 75 0 21.29 E 7 Computronics Fin CAPTALIN 94.37 38.02 1.6 0 E Average 36.78

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correct. Further, the Balance Sheet of Mahindra Consulting Engineers Limited are enclosed in page 3205 of the Paper Book. The assessee herein recognizes revenue from its AE on cost plus 5 % margin, whereas the comparable company recognizes revenue on percentage of completion method (POCM) which is reflected in page 3222 of the Paper Book. We also find that the coordinate bench of this Tribunal in the case of Emerson Process Management Power and Water Solutions India Pvt. Ltd. vs. ACIT vide order dated 13-04-2016 reported in 69 taxmann.com 185(Delhi Tribunal) had categorically held that Mahindra Consulting Engineers Limited cannot be considered as a good comparable for assessment year 2008-09 by observing as under:-

―MAHINDRA CONSULTING INDIA LTD. 20. The ld. AR for the assessee contended that this comparable company is functionally dissimilar, having significant related party transactions and relied upon order passed by Delhi Tribunal in case cited as Bechtel India (P.) Ltd. v. Addl. CIT [2014] 146 ITD 733/[2013] 33 taxmann.com 213 (Delhi - Trib.) 21. The TPO, while selecting the Mahindra as a comparable company, has returned the following findings :— "The assessee has objected to the use of this company as a comparable on account of being functionally different and submitted that consultancy services provided by this comparable company in multidisciplinary areas. In contrast, the services provided by the Assessee are in of an entirely different nature. Further, the Assessee has provided arguments on application of related party transaction filter to reject companies having controlled transactions in excess of 15% of revenue, the Assessee has submitted that during the FY 2007-08, Mahindra had transactions with its related parties to the extent of 15.51% of the total revenue. Here again the objection of the assessee is mainly on verticals of the company. It has already been discussed earlier in this order. Therefore, this company can also be used as a comparable having regard to assessee's functional profile.

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Further the taxpayer has objected this company on the basis of its own contention of RPT filter. This has already been discussed in the relevant para in this order and accordingly the company has less than 25% of RPT. Hence it is retained." 22. A perusal of the profile of the aforesaid company lying at page 2 of Compendium of Annual Report shows that this company is into infrastructure sector by providing consultancy services in the areas of Special Economic Zones, Water Supply & Sewerage, Solid Waste Management, Urban Infrastructure, Agri Infrastructure, Social Infrastructure, Ports & Harbour & Offshore Terminal, Industrial Infrastructure, etc. The company has also worked on innovative projects like Centre of excellence for Horticulture, Dedicated Offshore terminal for Coal Handling and is augmenting its efforts to consolidate its position as a front runner in innovative projects. 23. Similarly, perusal of page 24 of Compendium of Annual Report goes to prove that the comparable company is having related party transactions to the extent of 15.51% of the total value whereas, on the other hand, the assessee company is into providing application "Engineered Software Development and Related Services" to its group company which is diametrically dissimilar to the functional profile of the comparable company. 24. The TPO has disposed off both the objections to the inclusion of this comparable company as to the functional dissimilarity as well as a related party transaction to the extent of 15.51% by returning cryptic finding that, "the comparable companies is also operating in the area of consultancy only and the company having less than 25% related party transactions and has taken as comparable". However, when admittedly, the comparable company is engaged in infrastructure in the area of special economic zone, water sewerage, solid waste management, urban infrastructure, agri-infrastructure, social infrastructure, ports and harbor & offshore terminal, horticulture, coal handling, etc., the same cannot be compared with the assessee company which is into application "Engineered Software Development and Related Services". This comparable has been rejected by the coordinate Bench of the Tribunal in case cited as Bechtel India (P.) Ltd. (supra) and restored the file back to the TPO. Ld. DR for the revenue has not controverted the proposition mooted out by the assessee as to the aforesaid decision of the coordinate Bench in Bechtel India (P.) Ltd. (supra).‖ 33. In view of the aforesaid observations and respectfully following the judicial precedents relied upon hereinabove, we hold that Mahindra Consulting Engineers Ltd is not a good comparable with that of the assessee. Accordingly, Ground No. 4.5. raised by the assessee is allowed.

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A. INCLUSION OF ALPHAGEO INDIA LIMITED We find that the Learned CITA had observed from the annual report of the said comparable company for the financial year 2007-08, that the said comparable company was a leading player in niche business of seismic surveys and dealt in 2D and 3D seismic survey operations ,seismic data acquisition etc, which was not related with the nature of research services rendered by the assessee herein. No contrary evidence has been brought on record by the revenue before us in this regard. Hence, we hold that the Learned CITA was duly justified in excluding Alphageo India Limited from the final set of comparables by treating it as functionally not comparable with that of the assessee company.

B. INCLUSION OF STUP CONSULTANTS PVT LTD The Learned CITA on perusal of the annual report of the said comparable company for the financial year 2007-08 observed that the said company is

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carrying on profession of civil engineering and architecture consultancy which is not related with the nature of contract research and engineering services rendered by the assessee company and hence should not be considered as comparable with the assessee. The Learned CITA for this purpose had also relied on the segment information provided in the annual report of the comparable company wherein there was an abnormal growth in the revenue during the year under consideration which also makes the said comparable company not comparable with that of the assessee company. Hence the Learned CITA held that the said comparable company becomes functionally dissimilar and the economic circumstances are also unusual during the year under consideration thereby making the said comparable company not comparable with that of the assessee. No contrary evidence has been brought on record by the revenue before us in this regard. Hence, we hold that the Learned CITA was duly justified in excluding Stup Consultants Pvt Ltd from the final set of comparables by treating it as functionally not comparable with that of the assessee company.

C. INCLUSION OF SEMAC LIMITED The Learned CITA observed that the Learned TPO had included the said comparable company on the ground that it derived all its income from professional fees on account of technical consultancy and hence it was functionally comparable with that of the assessee. This finding was not agreed upon by the Learned CITA as the assessee is engaged in contract research activities along with engineering support services which differ in nature from technical consultancy. Accordingly, the Learned CITA held that the said comparable company is functionally not comparable with that of the assessee company. No contrary evidence has been brought on record by the revenue before us in this regard. Hence, we hold that the Learned CITA was

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duly justified in excluding Semac Ltd from the final set of comparables by treating it as functionally not comparable with that of the assessee company.

D. INCLUSION OF MITCON CONSULTANCY SERVICES LTD The assessee objected to the inclusion of the said comparable company on the ground that the said comparable company has been rejected by the learned TPO for failing the service income filter of 75%, but included the same later in the final list. The learned CITA observed that on perusal of the order of learned TPO, it was noticed that the income of the comparable company from consultancy services is only 57% as evident from the annual report and hence it is not to be taken as a comparable as it does not qualify the 75% income filter used by the learned TPO during the such process. Accordingly, the learned CITA had directed the learned TPO to exclude Mitcon Consultancy services limited from the final set of comparables. No contrary evidence has been brought on record by the revenue before us in this regard. Hence, we hold that the Learned CITA was duly justified in excluding Mitcon Consultancy Services Ltd from the final set of comparables.

E. INCLUSION OF KIRLOSKAR CONSULTANTS LIMITED The assessee submitted that the annual report of the said comparable company for financial year 2007-08 clearly mentioned that it was engaged in many areas of consultancy like project management, architectural consultancy etc. and had executed some major assignments unlike that of the assessee who provided contractual support services for research and engineering and did not execute similar projects as undertaken by the comparable company. Further, it was pointed out by the assessee that the

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said comparable company had a negative networth and was going on financial restructuring phase. Hence, by placing reliance on the Special Bench decision of this tribunal in the case of DCIT vs Quark Systems Limited reported in 38 SOT 307 wherein it was held that business organization with negative networth cannot be treated at par with a normal business organization , this comparable company was sought to be eliminated. The learned CITA duly appreciated the said fact of various functions performed by the said comparable company and observed that the said comparable company is engaged in significantly diversified operations and accordingly deserves to be treated as functionally dissimilar with that of the assessee company. No contrary evidence has been brought on record by the revenue before us in this regard. Hence, we hold that the Learned CITA was duly justified in excluding Kirloskar Consultants Limited from the final set of comparables.

F. INCLUSION OF COMPUTRONICS FINANCIAL SERVICES (INDIA) LTD The assessee objected to the selection of this company on the ground that it has been rejected by the Learned TPO originally as functionally dissimilar as the said company was engaged in providing services such as those related to mutual funds, share transfers, etc as compared to contract research services provided by the assessee. However, the Learned TPO had subsequently included the said comparable company in the final set of comparables. This fact was duly appreciated by the Learned CITA and accordingly the Learned CITA directed the Learned TPO to exclude the said comparable company from the final set of comparables as it is functionally dissimilar with that of the assessee. No contrary evidence has been brought on record by the revenue before us in this regard. Hence, we hold that the Learned CITA was

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duly justified in excluding Computronics Financial Services (India) Ltd from the final set of comparables.

G. EXCLUSION OF MAVENS BIOTECH LIMITED The assessee submitted before the Learned CITA that the said comparable company is to be included in the final set of comparables as its revenue includes trading income from agri and pharma business. The said comparable company is a plant biotechnology company with revenue coming from three divisions namely tissue culture unit, agri bioinformatics center and agricultural and pharmaceutical trading. It is engaged in research and development activities of tissue culture protocol for banana and sugarcane and achieved success in the field. All these facts are enclosed in the annual report of the said comparable company. Accordingly it was pleaded before the Learned CITA that the functional profile of the said comparable company match with the functional profile of the assessee. This fact was duly appreciated by the Learned CITA and accordingly the Learned CITA directed the Learned TPO to include Mavens Biotech Limited in the final set of comparables as functionally comparable with that of the assessee company. No contrary evidence has been brought on record by the revenue before us in this regard. Hence, we hold that the Learned CITA was duly justified in including Mavens Biotech Limited from the final set of comparables.

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Order pronounced in the open court on 18/12/2024. -Sd/- -Sd/- (SUDHIR KUMAR) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18/12/2024 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi