S.J.VAZIFDAR,J. - (1.) This is an appeal against the order of the Tribunal excluding from consideration two comparables, namely, Nucleus Netsoft and GIS (India) Limited and Vishal Information Technologies Limited. The matter pertains to the assessment year 2006-2007.
(2.) The appellant contends that the following substantial question of law arises in the appeal:- "Whether in the facts and circumstances of the case and in law, the Hon'ble ITAT was correct in excluding the cases of M/s. Nucleus Netsoft and GIS India Ltd. and M/s. Vishal Information Technologies Ltd. from the set of comparables, for determining Arm's Length Price of International Transaction entered into by the assessee with its Associated Enterprises?"
(3.) The Tribunal excluded both the comparables on the ground that a substantial part of their business is outsourced which is not so with the assessee. In each case, the extent of outsourcing exceeded 40%. In the case of Nucleus Netsoft and GIS (India) Limited, the Tribunal held that it is not a valid comparable also on the ground that another company was merged into it. We are informed that the transfree company, M/s. Nucleus Netsoft and GIS India Ltd., had its name changed to that of the transferor company.;