D.E. SHAW INDIA SOFTWARE (P) LTD. vs ASSISTANT COMMISSIONER OF INCOME TAX

Whether the Transfer Pricing Officer (TPO) and Commissioner of Income Tax (Appeals) [CIT(A)] erred in not excluding irrecoverable domestic expenses from operating costs for computing profit margin under Transfer Pricing regulations? --- Held: Yes, the matter is restored to the Assessing Officer for verification. Whether the assessee is entitled to the benefit of +/-5% range under proviso to Section 92C(2) without making a specific claim? --- Held: Yes. Whether the margin computation of comparable company M/s. e-Star Infotech Limited by TPO was correct? --- Held: No, requires re-examination. Whether M/s. Zen Technologies Ltd. should be excluded from comparables? --- Held: Yes, as it is functionally different.