M/S NARUS NETWORKS P LTD,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, BANGALORE

This appeal is filed by the assessee against the order of CIT(A), Bangalore, pertaining to the AY 2009-10.

Grounds of appeal are as under:

The ld AR for the assessee relied upon the judgment of the Tribunal in the matter of Infinera India Pvt Ltd vs ITO IT(TP) no 1008/2014 dated

The reading of this order clearly shows that the company namely Infinera was engaged in providing open and end to end web solutions software consultancy and design and development of software using the latest technology whereas Bodh tree consulting ltd was providing software development services, on account of the functionally different companies Bodh tree consulting ltd was excluded from the list of comparable.

In the present case, the assessee is engaged in providing software development services, and Bodh tree consulting ltd., is also rendering the software development services and therefore Bodh tree consulting ltd., cannot be excluded from the list of comparable being functionally similar to the assessee. Even otherwise, the objection raised by the assessee to the show cause notice before the TPO was this that the margins are highly fluctuating and therefore, for this reason also, the judgment cannot be applied to the present set of facts. Accordingly, this issue is decided against the assessee. Moreover, this company was included in the list of comparables on the basis of similarity of functions in previous years also and no objection was raised with respect to functional dissimilarity to that of IT(TP)A No. 1631/Bang/2014 Page 4 of 4 the assessing company. In this view of the matter also, the contention of the assessee for excluding this company namely Bodh tree Consulting Ltd., is required to be rejected. We reject the same.

In the result, the appeal is dismissed.