Northern Operating Services Alert

The Tribunal dismissed the appeal and cross-appeal of Revenue Authorities and the Taxpayer respectively as the matter in dispute was resolved in MAP proceedings

Facts of the Case

Northern Operating Services Private Limited ["the taxpayer"] is an  Information Technology Enabled Services provider. For assessment year 2010-11, appeal and cross appeal were filed by the Revenue and the taxpayer respectively against the order of the Assessing Officer ["AO"] before Income-tax Appellate Tribunal ("the Tribunal").

Following grounds were raised by the Revenue before the Tribunal:

• That the Dispute Resolution Panel ("DRP") erred in rejecting certain comparable companies citing that size and turnover of any company are reliable factors for treating it as an appropriate comparable; and