{"id":648,"date":"2015-12-09T06:45:32","date_gmt":"2015-12-09T06:45:32","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=648"},"modified":"2025-11-05T12:09:22","modified_gmt":"2025-11-05T12:09:22","slug":"company-engaged-in-clinical-research-isnt-comparable-with-a-software-development-service-provider","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/company-engaged-in-clinical-research-isnt-comparable-with-a-software-development-service-provider\/","title":{"rendered":"TP: CLINICAL RESEARCH COMPANY ISN&#8217;T COMPARABLE WITH A SOFTWARE DEVELOPMENT SERVICE PROVIDER"},"content":{"rendered":"<p style=\"text-align: justify;\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2015\/12\/Get-Professional-Help.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3150\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2015\/12\/Get-Professional-Help.png\" alt=\"www.caindelhiindia.com; Get Professional Help\" width=\"1091\" height=\"626\" \/><\/a><\/p>\n<p><span style=\"color: #000080;\"><strong>CO. ENGAGED IN CLINICAL RESEARCH ISN&#8217;T COMPARABLE WITH A SOFTWARE DEVELOPMENT SERVICE PROVIDER<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong><span style=\"color: #ff6600;\"><span style=\"color: #800080;\">Mindtek v. ITO [Bangalore ITAT] IT (TP) Appeal No. 1082 of 2011,<\/span><\/span><\/strong><span style=\"color: #800080;\">\u00a0<strong><span style=\"color: #800080;\">dated May 14, 2015.<\/span><\/strong><\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong><span style=\"color: #ff6600;\">Facts of th<\/span><span style=\"color: #ff6600;\">e case<\/span><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The assessee company is engaged in the business of rendering software development research and development services. The Assessee provides such services to its group companies apart from independent customers. The assessee adopted Comparable Uncontrolled Price Method (CUP) as the most appropriate method for determining the ALP.<\/p>\n<p style=\"text-align: justify;\">The TPO, however, proceeded to adopt Transaction Net Margin (TNMM) as the most appropriate method for determining ALP.Thereupon the TPO selected comparables and made certain addition to the assessee&#8217;s ALP.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong><span style=\"color: #800080;\"><span style=\"color: #ff6600;\">Deci<\/span><span style=\"color: #ff6600;\">sion o<\/span><\/span><span style=\"color: #ff6600;\">f the Tribunal<\/span><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The Appellate Tribunal held that the company engaged in clinical research isn\u2019t comparable with a software development service provider. Moreover, companies developing their own software products could not be accepted as comparables to the assessee while determining ALP. It was further held that the provisions of law as well as the decision referred to by the assessee clearly lay down the principle that the turnover filter is an important criteria in choosing the comparables. Thus, companies having turnover of more than 200 crores have to be eliminated from the list of comparables and the companies having related party transactions in excess of 15 per cent of revenue, could not be accepted as comparables.<\/p>\n<h3 data-start=\"126\" data-end=\"211\"><span style=\"color: #000080;\"><strong>Prime Minister Launches INR 1 Lakh Crore RDI Fund to Boost Private Sector Innovation<\/strong><\/span><\/h3>\n<ul>\n<li data-start=\"213\" data-end=\"644\">PM Narendra Modi launched the INR 1 lakh crore Research, Development and Innovation Fund aimed at promoting private sector investments in research and development. The initiative was unveiled at the first-ever Emerging Science, Technology and Innovation Conclave, which convenes policymakers, innovators, and global visionaries to advance the government\u2019s Viksit Bharat 2047 vision.\u00a0The RDI Fund seeks to strengthen India\u2019s innovation ecosystem, enhance technological self-reliance, and foster collaboration between industry, academia, and research institutions. It is expected to play a pivotal role in positioning India as a global leader in science, technology, and innovation by 2047.<\/li>\n<\/ul>\n<p>The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact:\u00a0<a href=\"mailto:info@caindelhiindia.com\">info@caindelhiindia.com<\/a>\u00a0or call at\u00a0011-233 433 33<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>CO. ENGAGED IN CLINICAL RESEARCH ISN&#8217;T COMPARABLE WITH A SOFTWARE DEVELOPMENT SERVICE PROVIDER Mindtek v. ITO [Bangalore ITAT] IT (TP) Appeal No. 1082 of 2011,\u00a0dated May 14, 2015. Facts of the case The assessee company is engaged in the business of rendering software development research and development services. The Assessee provides such services to its &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[173],"tags":[567,568,569,571,570,572,179,180,214,181,194],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/648"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=648"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/648\/revisions"}],"predecessor-version":[{"id":1438,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/648\/revisions\/1438"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}