2021 (2) TMI 1322

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....characterization of the assessee as a high-end information technology enabled service (ITES)/knowledge process outsourcing (KPO) service provider. 3. Briefly stated, the assessee, a resident company, is registered as STPI unit with Software Technology Park of India. The assessee is mainly engaged in providing various kinds of information technology enabled services to its overseas associate enterprises (AEs). The assessee benchmarked the international transactions with AEs by applying TNMM as the most appropriate method and selected comparables in the ITES (BPO) category. However, the Transfer Pricing Officer (TPO) did not accept the comparables selected by the assessee. By re-characterizing the assessee as high-end ITES/KPO service provid....

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....bmitted, the issue may be restored back to the Assessing Officer for fresh adjudication after examining the documentary evidences filed by the assessee. 5. The learned Departmental Representative, though, relied upon the observations of the TPO and learned DRP; however, he did not have any serious objection with the restoration of issue to the Assessing Officer. 6. We have considered rival submissions and perused materials on record. As discussed earlier, the grievance of the assessee is against its re-characterization as a high-end ITeS/KPO service provider. As could be seen from the facts on record, simply relying upon an order of the CESTAT, the TPO has re-characterized the assessee as a KPO service provider. Before learned DRP, the as....

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.... 07-06-2017, wherein, various services have been classified under ITeS and KPO categories. It is the contention of the learned Counsel for the assessee, the services provided by the assessee are coming under the ITeS category even under the Safe Harbour Rules, 2017 of the CBDT. In our considered opinion, all these aspects have not at all been examined either by the TPO or by learned DRP while re-characterising the assessee as a high-end ITeS/KPO service provider. In view of the aforesaid, we restore the issue to the Assessing Officer for considering assessee's claim that it is a low end ITeS service provider and not a KPO service provider. While doing so, the Assessing Officer must verify all the documentary evidences furnished by the asses....