Tribunal allows appeal grounds, includes new company, directs tax adjustments.

The Tribunal allowed grounds 3(1), 8, and 9 of the appeal, directing the inclusion of "I2T2 India Limited" as a comparable company and remanding the credit discrepancies for advance tax, self-assessment tax, TDS amounts, and MAT credit to the Assessing Officer for appropriate verification and adjustment.

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Issues:
1. Challenge to assessment order for AY 2014-15 under section 143(3) read with 144C.
2. Inclusion of "I2T2 India Limited" as a comparable company.
3. Discrepancies in granting credit for advance tax, self-assessment tax, TDS amounts, and MAT credit.

Analysis:

Issue 1: Challenge to Assessment Order
The appeal was filed challenging the assessment order dated 29-10-2018 passed by the assessing officer for assessment year 2014-15 under section 143(3) read with 144C of the Act, following directions from the Dispute Resolution Panel (DRP). The Tribunal recalled its earlier order to adjudicate specific grounds related to the appeal, leading to the matter being listed again.

Issue 2: Inclusion of "I2T2 India Limited" as a Comparable Company
The assessee sought the inclusion of "I2T2 India Limited" as a comparable company. The argument presented was that this company is functionally comparable and meets the necessary criteria. Referring to a previous case involving LG Soft India P. Ltd., it was established that "I2T2 India Limited" was considered a suitable comparable for a captive software development service company. The Tribunal, following the decision in the LG Soft India P. Ltd. case, directed the Transfer Pricing Officer (TPO)/Assessing Officer (AO) to include "I2T2 India Limited" as a comparable company.

Issue 3: Discrepancies in Granting Credit
Grounds 8 and 9 of the appeal raised concerns regarding the incorrect grant of credit for advance tax, self-assessment tax, TDS amounts, and Minimum Alternative Tax (MAT) under section 115JAA of the Act. The Tribunal found these claims required verification by the AO. Consequently, both issues were remanded to the AO for proper examination and adjustment of the credit amounts as per the correct figures claimed by the assessee.

In conclusion, the Tribunal allowed grounds 3(1), 8, and 9 of the appeal, directing the inclusion of "I2T2 India Limited" as a comparable company and remanding the credit discrepancies for advance tax, self-assessment tax, TDS amounts, and MAT credit to the AO for appropriate verification and adjustment.

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