Sec. 92C of Income Tax Act, 1961—Transfer Pricing—Selection of Comparable- Functionally dissimilar company cannot be selected as comparable.

Facts: Assessee in appeal before the Tribunal against the order of AO/TPO rejecting the comparables chosen by assessee.

Held, that when detail of export sales is not available comaprable company (Melstar) cannot be rejected just like that,thus, TPO was directed to rework the suitability of Melstar as a comparable vis-à-vis taxpayer by supplying the copy of details of export sales of Melstar relied upon by him. A giant company, cannot be a suitable comparable vis-à-vis taxpayer who is a captive service provider having no expenditure on R&D, having no goodwill and intellectual property rights as well as patents. A company which is functionally dissimilar cannot be selected as a comparable . - AITHENT TECHNOLOGIES 9P.) LTD. V/s ITO - [2020] 182 ITD 169 (ITAT-DELHI)