UNITED HEALTH GROUP INFORMATION SERVICES PVT. LTD. Vs. ASSISTANT COMMISSIONER OF INCOME TAX
INCOME TAX APPELLATE TRIBUNAL
United Health Group Information Services Pvt. Ltd.
ASSISTANT COMMISSIONER OF INCOME TAX
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R.S.Syal, Member (A) -
(1.) THIS appeal by the assessee arises out of the order passed by the Assessing Officer on 31.10.2012 u/s. 143(3) r.w.s. 144C of the Income -tax Act, 1961 (hereinafter also called 'the Act') in relation to the assessment year 2008 -09.
(2.) BRIEFLY stated the facts of the case are that the assessee was incorporated in India in January 2007. It is engaged in the business of providing expertise in software development, health care claim adjudication and bio -pharmaceutical services. Seven international transactions -'Provision of claim processing services (ITES)', 'Provision of data analytics services', 'Provision of software development services', 'Clinical research services', 'Reimbursement of expenses' to the assessee', 'Reimbursement of expatriates' salaries' by the assessee and 'Advance money received' -were reported by the assessee. The assessee furnished segment wise financial data to demonstrate that its international transactions were at ALP on segmental level under the Transactional Net Margin Method (TNMM). The TPO examined the results of various segments separately by applying TNMM with the same filter of the OP/TC. The TPO accepted the last four transactions at Arm's Length Price (ALP). He clubbed first two transactions of 'Provision of claim processing services' and 'Provision of data analytics services' under a common 'ITES segment' and benchmarked them on a consolidated basis. Similarly he did not accept the price declared by the assessee for 'Provision of software development services' at ALP. The position which, therefore, emerges is that the TPO did not dispute the correctness of the segmental data. He has also benchmarked the international transactions of the assessee at the segmental level rather than entity level. Since the dispute in the present appeal relates to the transfer pricing adjustment in two segments, viz., ITES and Software development services, we will consider them one by one.
A. ITES Segment
(3.) FIRSTLY , we take up the ITES segment, international transactions in respect of which amounted to Rs. 75,18,04,293/ - under 'Claim processing services' and Rs. 5,32,54,700/ - under the 'Provision of data analytics services'. No serious objection has been taken by the ld. AR on the clubbing of these two international transactions by the TPO under the overall ITES segment. As such, we are also proceeding accordingly.;
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