FIL India Business & Research Services Pvt. Ltd. Vs Assessment Unit (ITAT Delhi)
TP Comparable Fails Its Own Turnover Filter: ITAT Delhi Orders Fresh ALP Re-Work & Deletes PF Disallowance
FIL India Business & Research Services Pvt Ltd, engaged in software development, IT-enabled services & research support services, filed appeal against the final assessment order u/s 143(3) r.w.s. 144C(13). The DRP had upheld major Transfer Pricing adjustments & certain corporate tax additions.
Transfer Pricing – Comparable Rejected
The key issue was a TP adjustment of ₹14.56 crore in the Research Support Services segment.
Tribunal noted that the TPO himself applied a turnover filter of ₹5–100 crore, but included SPT Investment Advisory Services Ltd, which had turnover of ₹3.65 crore—failing the very filter adopted.
Since the assessee’s challenge to this incorrect inclusion was found valid, the Tribunal directed the AO/TPO to exclude SPT & recompute ALP strictly applying the filter. Once this was accepted, the remaining TP grounds became academic.
PF Employees’ Contribution – Addition Deleted
AO had added ₹2.21 crore towards delayed deposit of employees’ PF contribution. Tribunal relied on its earlier order in the assessee’s own case (ITA 412/Del/2023 dated 10.08.2023) where identical disallowance was deleted because payment was actually made within due date, but credited late to EPFO due to portal technical glitches. Since the assessee had debited its bank account within time, delay due to EPFO system issues was held not attributable to the assessee. The Tribunal held that Checkmate Services (SC) did not apply to such facts. Accordingly, the entire PF disallowance was deleted.
