Pr. Commissioner Of Income Tax, Delhi- 9 v. M/S Xchanging Technology Services India Pvt. Ltd

$~1 * IN THE HIGH COURT OF DELHI AT NEW DELHI+ ITA 553/2019 PR. COMMISSIONER OF INCOME TAX, DELHI- 9..... Appellant Through: Mr. Zoheb Hossain, Senior Standing Counsel for Revenue versus M/S XCHANGING TECHNOLOGY SERVICES INDIA PVT. LTD. ..... Respondent Through: None CORAM:JUSTICE S.MURALIDHAR JUSTICE TALWANT SINGH O R D E R% 03.07.2019 CM No. 28736/2019 (delay in filing the appeal) and CM No. 28737/2019 -(delay in refiling the appeal) 1. For the reasons explained in the applications, the delay in filing and re-filing the appeal is condoned and the applications are allowed. ITA 553/2019 2. The Revenue is in appeal against the order dated 20[th] August 2018 passed by the ITAT in ITA No. 121/Del/2015 for the AY 2010-11. 3. The Revenue’s grievance is about the ITAT ratifying the direction of the Dispute Resolution Panel (DRP) regarding exclusion of the company E-Infochips Bangalore Ltd. in the final set of comparables for the purposes of the transfer pricing (TP) exercise. 4. The Court has been presented by learned counsel for the Revenue with a chart showing the findings of the Transfer Pricing Officer (TPO)/ Assessing Officer (AO) as regards E-Infochips Bangalore Ltd. What appears to have weighed with the ITAT in agreeing with the DRP to exclude the said comparable is its wide ranging clientele. It has been found to be providing hi-tech engineering consulting and product innovation services, not just to software developers but also to other sectors like aerospace, defence, healthcare, media and broadcast, medical devices, security and surveillance etc. The exclusion of the said comparable cannot, therefore, be said to be unjustified. 5. Even as regards the second comparable that has been excluded, viz., Infinite Data Systems Private Limited, the ITAT has based its conclusions on a detailed analysis of the profile of the said comparable vis-a-vis the Assessee. 6. The legal position as regards the choice of comparables for the TP analysis has been explained by this Court in Rampgreen Solutions Pvt. Ltd. v. CIT, 2015 SCC Online Del 11310. Even otherwise, the Court is not persuaded that the impugned order of the ITAT suffers from any serious error in law or gives rise to any substantial question of law. 7. The appeal is accordingly dismissed. JULY 03, 2019 PB S. MURALIDHAR, J. TALWANT SINGH, J.