Tribunal upholds addition to taxable income under section 92C, includes Tata Technologies but excludes Onward Technologies.

The Tribunal dismissed the appeal of the assessee, upholding the addition to taxable income under section 92C and the inclusion of Tata Technologies Ltd. as a comparable in the transfer pricing study. The Tribunal also confirmed the exclusion of Onward Technologies Ltd. as a comparable due to consistent losses, rejecting the assessee's arguments against these adjustments.

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Issues:
1. Delay in filing appeal
2. Addition to taxable income under section 92C of the Income Tax Act, 1961
3. Exclusion of Onward Technologies Ltd. as a comparable
4. Inclusion of Tata Technologies Ltd. as a comparable
5. Related Party Transactions of Tata Technologies Ltd.

Delay in filing appeal:
The appeal by the assessee was filed with a delay of 88 days, and a petition for condonation of delay was submitted citing reasons for the delay. The Tribunal condoned the delay, considering it unintentional, and admitted the appeal for hearing on merits.

Addition to taxable income under section 92C:
The Assessing Officer made an adjustment of Rs. 72,79,939 in the international transactions of the assessee under section 92C of the Income Tax Act, 1961. This adjustment was based on the exclusion of Onward Technologies Ltd. from the list of comparables due to consistent losses, leading to an increase in the arithmetic mean of the remaining comparables.

Exclusion of Onward Technologies Ltd. as a comparable:
The assessee contested the exclusion of Onward Technologies Ltd. as a comparable, arguing that the company did not qualify as a consistent loss-making entity based on its financial performance in relevant years. However, the Tribunal upheld the exclusion, determining that Onward Technologies Ltd. was indeed a consistent loss-making company and therefore not suitable as a comparable.

Inclusion of Tata Technologies Ltd. as a comparable:
The Tribunal dismissed the assessee's plea to exclude Tata Technologies Ltd. as a comparable, as the appellant failed to demonstrate that the company had abnormal profits. Consequently, the Tribunal found no merit in the appeal and upheld the inclusion of Tata Technologies Ltd. as a comparable.

Related Party Transactions of Tata Technologies Ltd.:
The Tribunal noted that Tata Technologies Ltd. had substantial Related Party Transactions, but this factor did not lead to the exclusion of the company as a comparable. The Tribunal dismissed the appeal of the assessee, leading to the final decision to uphold the addition to the taxable income and the inclusion of Tata Technologies Ltd. as a comparable.

In conclusion, the Tribunal dismissed the appeal of the assessee, upholding the addition to taxable income and the inclusion of Tata Technologies Ltd. as a comparable in the transfer pricing study.

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