Commissionrer Of Income Taxinternational Taxation-3 v. Ut Starcom Inc. (India Branch)Through

$~2 *IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 767/2017 COMMISSIONRER OF INCOME TAXINTERNATIONAL TAXATION-3..... AppellantThrough :Mr. Rahul Chaudhary, SeniorStanding Counsel for the Income TaxDepartment. versus UT STARCOM INC. (INDIA BRANCH)Through : ..... RespondentMr. Prakash Kumar, Advocate. CORAM:JUSTICE S. MURALIDHARJUSTICE PRATHIBA M. SINGH O R D E R25.09.2017 % 1. The Revenue is in appeal against an order dated 23[rd]December 2016passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No.5848/Del/2011 for the Assessment Year 2007-08. 2. The following two questions have been urged by the Revenue forconsideration: “(i) Whether the Tribunal erred in law in directingexclusionofInfosysTechnologiesLtdandKalsInformationSystemsLtdinrespectofSoftwareDevelopmentSegmentandexclusionofVishalInformation Technology Ltd (now Coral Hub Limited) inrespect of IT Enabled Services Segment though all the aforesaid companies were functionally similar underTransaction Net Margin Method? (ii) Whether the Tribunal erred in law in laying downstringentstandardsofcomparabilityanalysisasapplicable to traditional methods such as ComparableUncontrolledPrice(CUP)Methodforselectingcomparables under Transactional Net Margin Method(TNMM)?” 3. Having heard learned counsel for the Revenue, the Court is of the viewthat the ITAT has given cogent reasons for excluding the aforementionedcomparables applying TNMM and its order suffers from no legal infirmitygiving rise to any substantial question of law. 4. The appeal is dismissed. S. MURALIDHAR, J. SEPTEMBER 25, 2017j PRATHIBA M. SINGH, J.