OLF (India) Software Pvt Ltd v ACIT [TS-456-ITAT-2021(Bang)-TP] [Judges: Shri Baskaran and Smt Beena Pillai] – The assessee is engaged in rendering software development services to AE. The assessee sought exclusion of Persistent Systems, Aspire Systems, Larsen and Toubro Infotech, Nihilent Technologies, Infosys Ltd, Thirdware Solution & Cybage Software on the ground that these companies are functionally different and fail upper turnover filter of Rs. 200 crores or 10 times turnover filter.
The Tribunal observed that the revenue has not established that these comparables companies are comparable to the captive service providers like the assessee. The Tribunal also held that the upper turnover filter should be applied. The Tribunal therefore directed to exclude these companies from the list of comparables. The Tribunal also directed to correct the margins of Aspire Systems, Nihilent Technologies, & Cybage Software in accordance with law.