Since it provided captive service to its foreign principal which was its Associated Enterprise (AE), the Assessee furnished a transfer pricing study including a set of 8 comparables with an average profit margin of 14.34% on costs. Thus the margin earned by the Assessee at 15.95% on total costs was treated as being at arm's length. The comparables engaged in IT Enabled Services (‘ITES") were treated as comparables irrespective of the verticals i.e. industries to which it caters by horizontals (functional lines like back office operations, medical transcription etc).