Law & Society

Alcon Laboratories Pvt Ltd vs Asst. CIT

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The assessee is engaged in the business acting as distributors for surgical products of its parent company Alcon Inc., USA. The assessee also provides Software Development Services (SWD services) which has been referred to as IT Support Services in the order of the Transfer Pricing Officer (TPO), and also provides Marketing and Sales Support Services (MSS) to its wholly owned holding company.

As far as exclusion of RS Software (I) Ltd. from the list of comparable companies is concerned, we find that in ground No.7 of CO, the assessee has also sought inclusion of this company in the list of comparable companies. The ITAT Bangalore Bench in the case of Applied Materials (I) Pvt. Ltd. Vs. ACIT in IT(TP)A No.17 & 39/Bang/16 (AY 2011- 12) order dated 21.09.16 vide para 14.1 took the view that both assessee and Revenue do not seek exclusion of this company, the DRP ought not to have suo motu applied onsite revenue filter to exclude this company. Facts being identical in this appeal, following the aforesaid decision, Bangalore ITAT held that this company shall be retained as a comparable company. The relevant grounds of appeal of Revenue and assessee are accordingly allowed.

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