Agilent Technologies India Pvt Ltd vs Dy. CIT
Assessee Company is engaged in the business of trading in and servicing of analytical and testing equipment on software. It is a wholly owned subsidiary of Agilent Technologies International Europe BV and is engaged in the provision of software development services and IT enabled services to its overseas group companies. It has entered into several international transactions and facilitates sales of groups products in the Indian market. It also provides software development and marketing services to its associated enterprise.
The learned transfer pricing officer on examination of those international transactions proposed an adjustment u/s 92CA determining the ALP of the international transaction. The claim of the assessee is that 2 comparables have been excluded by the coordinate bench in assessee’s own group entity’s case. Therefore being similar functional profile, both these comparables should be excluded in the case of the assessee also.
In view of such a huge turnover of the comparable company, relying on the decision of the honourable Bombay High Court in case of CIT versus Pentair water private limited and of honourable Delhi High Court in case of CIT versus Agnity India technologies Ltd in ITA, the above comparable is directed to be excluded. For the second comparable Tata Elxis Ltd it is pointed out that in the directors report of the company it is stated that the above company is engaged in software development in service segment wherein that segment comprises of product design services which comprises of hardware and software design and development, innovation design engineering and visual computing labs. In view of this, the learned TPO to excluded the above comparable.