TPO Compared Dissimilar Companies for Determining ALP for Future First Info: Delhi HC Directs Exclusion of Infosys BPO, Acropetal, and e-Clerx as Comparables [Read Order]

The Delhi High Court directed the exclusion of Infosys BPO, Acropetal, and e-Clerx as comparable companies in determining the arm’s length price (ALP) for Future First Info. The Tax Officer (TPO) had compared these dissimilar companies in determining the ALP for inter-company transactions, but the Court found that such comparisons were inappropriate. The Court ruled that only comparable entities should be considered when determining ALP, and in this case, the chosen companies did not meet the necessary criteria. This decision reinforces the importance of selecting appropriate comparables for transfer pricing assessments.