Case Law Details
Dell International Services India Pvt. Ltd. Vs JCIT (LTU) (ITAT Bangalore)
The assessee did not object to inclusion of this company before the TPO but objected to inclusion of this company before DRP. The DRP did not adjudicate the objection. In these circumstances, we are of the view that exclusion of this company from the list of comparable companies has to be examined by the TPO/ AO and we remand the issue to the TPO/AO. The law is well settled that the assessee is entitled to object to inclusion / exclusion of companies at the stage of appellate proceedings and there is no estoppel. The AO/TPO will afford opportunity of being heard to the assessee in the set aside proceedings.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
IT(TP)A No.637/Bang/2016 is an appeal by the assessee while IT(TP)A No.639/Bang/2016 is an appeal by the Revenue. Both the appeals are directed against the final assessment order dated 29.01.2016 of JCIT, LTU Unit, Bengaluru, under section 143(3) r.w.s. 144C of the Income Tax Act, 1961 (hereinafter called the ‘Act’) in relation to Assessment Year 2010-11.
2. The issues that arises for consideration in the above cross-appeals pertains to the aggregate Transfer pricing adjustment (“TP adjustment”) of Rs. 1,26,90,33,692/- made by the Transfer Pricing Officer (‘the TPO’ for short) towards the international transactions of provision of Software Development services (‘SWD services’ for short) and Information Technology Enabled services (‘ITES’ for short) by the Assessee to its Associated Enterprises (‘AE’ for short), which was subsequently reduced to Rs. 1,11,82,20,792/- on giving effect to the directions of the Dispute Resolution Panel (‘the DRP’).
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