JDA Software India Pvt Ltd vs Dy. CIT
The assessee is a wholly owned subsidiary of JDA Software Inc. The assessee is primarily engaged in the business of development of software and other allied services to its AE. During the relevant assessment year, the assessee had entered into three international transactions with its AE. The learned AR is seeking to exclude the Persistent Systems and Solutions Ltd on account that it is not functionally comparable to the assessee.
According to the TPO, product development is nothing but software development services, and therefore, the company is comparable to the assessee. The view taken by the TPO was confirmed by the DRP. In the light of the above reasoning and the order of the Tribunal in the case of Applied Materials India Pvt., Bangalore ITAT directed that Persistent Systems & Solutions Limited to be excluded from the list of comparables.