Wipro GE Healthcare Private Limited Vs DCIT (ITAT Bangalore)
Facts and Procedural Background
The supplied order is a Legal Case/Judgment/Tribunal Order of the Income Tax Appellate Tribunal, Bangalore Bench “C”, pronounced on 07.10.2022 in IT(TP)A No.344/Bang/2021 for AY 2006-07 and ITA No.703/Bang/2021 for AY 2012-13. The Tribunal comprised Shri Chandra Poojari, Accountant Member, and Smt. Beena Pillai, Judicial Member; the hearing was held on 12.09.2022.
For AY 2006-07, the original assessment dated 12.10.2010 contained a transfer-pricing adjustment of Rs.2,35,51,065/- in the software-services segment. The Tribunal, by order dated 23.06.2017 in IT(TP)A No.1414/Bang/2010, set aside the entire transfer-pricing issue and restored it to the AO/TPO for fresh decision after adequate opportunity. In the set-aside proceedings, the TPO determined an adjustment of Rs.2,42,58,140/-. The assessee challenged the comparables and filters, including turnover, RPT, functional comparability and other criteria. The DRP directed removal of Kals Information Systems Ltd. (seg), but the AO retained the adjustment without giving effect to that direction.
For AY 2012-13, the AO made additions including transfer-pricing adjustments of Rs.113,56,25,171/-, comprising royalty of Rs.12,64,67,850/-, interest on intra-group trade advances of Rs.51,81,085/-, distribution-segment adjustment of Rs.91,39,62,617/- and software-development adjustment of Rs.9,00,13,619/-, besides other disallowances. The TPO passed the order on 28.10.2019, the draft assessment order followed on 30.12.2019, the assessee filed DRP objections on 27.01.2020, the DRP issued directions on 11.02.2021, and the AO passed the final assessment order on 30.03.2021 without following those directions.
