ITAT Limits Its Directions – Excludes Comparables Due to Improper Remand to DRP

Xchanging Solutions Limited Vs DCIT (ITAT Bangalore) In this case, the core issue revolved around transfer pricing adjustments and whether the AO/TPO validly implemented ITAT directions. Earlier, the ITAT had remanded the issue of 5 comparables to the DRP, while certain other issues were remanded to the TPO. The Tribunal observed that DRP and TPO are not parties before ITAT, and therefore, directions should ordinarily be given only to the Assessing Officer. The earlier remand to the DRP created a procedural irregularity, as the DRP can act only when invoked through the statutory mechanism unde...