India Private Limited, Tax, Hyderabad. Circle 16(2), Hyderabad. PAN:AABCV9961D (Appellant) (Respondent) Assessee by: Shri Nageswara Rao, Advocate. Revenue by: Ms. M. Narmada, CITDR Date of hearing: 12/02/2025 Date of pronouncement: 05/05/2025 ORDER PER MADHUSUDAN SAWDIA, A.M. : This appeal is filed by M/s. Open Text Technologies India Private Limited ("the assessee"), feeling aggrieved with the final assessment order of Learned Assessing Officer ("Ld. AO") passed u/s. 143(3) rws 92CA(3) & 144(C)(1) of the Income Tax Act, 1961 ("the Act") on 29.10.2018 as per the direction of Learned Dispute Resolution Panel ("Ld. DRP") dated 27.08.2018 for the A.Y. 201415. 2 ITATPNo.2387/Hyd/2018 2. The assessee has raised the following grounds of appeal : "1. Rejection of transfer pricing documentation maintained and undertaking fresh economic analysis. Rejection of the transfer pricing documentation maintained by the asses in accordance with the provisions of Act read with the Income Tax Rules, 1962 ('Rules') and undertaking a fresh economic analysis during the course assessment proceedings and thereby making an adjustment of Rs. 16,21,20,521 towards the international transactions with AEs. 2. Rejection of use of multiple year data : Rejecting the use of multiple and using data for the FY 201314 only in determining the arm's length price. 3. Use of additional filters : Interalia use of the following additional / modified filters in undertaking the comparative analysis and rejecting comparable companies : (a) 75% Export Revenue Filter. (b) Different Financial Year Filter; and (c) Using one sided turnover filter. 4. Selection of additional companies : Not undertaking an objective and consistent comparative analysis and interalia selecting the following companies as comparable to the services of the assessee ignoring the fact that the same are not functionally comparable to the assessee. (a) Tata Elxsi Limited (Seg.) (b) Mindtree Limited (c) R S Software (India) Limited (d) EInfochips Ltd. (e) Larsen & Toubro Infotech Limited (f) Infosys Ltd. (g) Persistent Systems Limited (h) Infobeans Technologies Limited (i) Thirdware Solutions Limited. 3 ITATPNo.2387/Hyd/2018 5. Rejection of Comparables : Not undertaking an objective and consistent comparative analysis and interalia rejecting the following comparable companies: (a) Akshay Software Technologies Limited. (b) Caliber Point Business solutions Limited (Seg) (c) Maveric Systems Limited (d) Sasken Communication Technologies Ltd (Seg) (e) Sagar Soft India Ltd. (f) Kellton Tech Solutions Ltd. (g) Goldstone Technologies Limited (h) CAT Technologies Limited (i) Helios & Matheson Information Technology Ltd. (j) R Systems International Limited (Seg) (k) TVS Infotech Ltd. (l) Accel Frontline Ltd. (Seg) (m) Infomile Technologies Ltd. (n) Kals Information Systems Limited (o) Sankhya Infotech Limited (p) Zylog Systems Limited (q) Acropetal Technologies Limited. 6. Erred in application of persistent loss filter and thereby not following the directions of Hon'ble DRP for including Sagar Soft India Limited in the final list of comparables. 7. Determination of operating margins of comparables. (a) Error in computing segmental margin of Tata Elsxi Limited (b) Considering Provision for Bad and Doubtful Debts (PBDD) as non operating expenditure in determining the operating margins of companies considered comparable. Which are 1. EInfochips Ltd. 2. Larsen & Toubro Infotech Ltd. 3. Infosys Ltd. 4. Persistent Systems Ltd. 8. Working capital adjustments Not adjusting the net margins of comparable companies for functional and risk differences in accordance with the provisions of r