TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 722
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....the Act") for A.Y. 2016-17. 2. The brief facts of the case are that assessee is a company engaged in providing consulting services i.e., MCS services to third parry customers of Microsoft Group entities. Assessee company filed its A.Y. 2016-17 declaring Rs. 95,86,46,580/-. Subsequently, the case was selected for scrutiny under CASS. Thereafter, notices under Sections 143(2) and 142(1) issued. In response, assessee has submitted the information called for through ITBA Portal from time to time. During the course of scrutiny, the case was referred to the TPO u/s 92CA of the Act for determination of Arm's Length Price. Thereafter, the TPO proposed transfer pricing adjustment of Rs. 95,16,40,000/-. On receipt of the order u/s 92CA(3) from the T....
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....etter dt.20.07.2023. He has drawn our attention to the said letter, which is to the following effect: 6. The ld. AR for the assessee has submitted that the addition made by the TPO were having two elements i.e., (i) US related and (ii) Non-US related TP adjustments. It was submitted that the addition with respect to US related assessment has been resolved under MAP and the issues with respect to Non-US related adjustments are not, as the same pertaining to domestic transactions. For that purposes, ld. AR has drawn our attention to page 516 of the paper book where the bifurcation of the Revenue has given as under: 7. Further, ld. AR has drawn our attention to page 528 of the paper book where the Schedules 16 and 17 are reproduced. 8. On t....
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.... TPO has correctly assumed the total benefits granted to the employees of the assessee at Rs. 29,61,94,038 (22,38,17,006 + 7,23,77,032) and added to the total operating cost of the assessee" In view of the above findings of Hon'ble DRP, the undersigned hereby confirms that there is no mistake which requires rectification. Hence, the concern of the taxpayer vide its petition u/s 154 is addressed accordingly. The final adjustments after giving effect to the DRP order are as under: As per the directions of Hon'ble DRP , Adjustment towards Software Development Services is Rs. 91,33,00,000/- and therefore the Total adjustment is Rs. 91,33,00,000/-". 10. He has also drawn our attention to page 331 where the ALP was calculated afte....
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....'s domestic operations do not come under the ambit of Indian Transfer Pricing provisions and hence, the costs pertaining to the same should not be included while computing transfer pricing adjustments. This ground is without prejudice to the arguments of the Appellant against erroneous approach of Ld. DRP and Ld. TPO /AO. Part II Corporate tax matters 4.That on the facts and in law, the Ld. AO was not justified and has erred in not considering claim of TDS credit of Rs. 5, 19,455 made by the Company during the assessment proceedings and not considering the directions of Ld. DRP in relation to grant of TDS credit. 5. That on the facts and in law, on disposal of this appeal material adjustment would be required in computing total....
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....ment in the case of the assessee is calculated at Rs. 91.33 Crores. The above shortfall of Rs. 91,33,00,000/- may be treated as adjusted Transfer Pricing adjustment in respect of Software Development Segment of the taxpayer's international transactions. Further, vide application u/s 154 dated 20-02-2020, the taxpayer has requested for exclusion of TDS payment made on stock awards. The application was technically rejected on the ground that the same will be considered while giving effect to the order of Hon'ble DRP. However, it is seen that Hon'ble DRP vide its order under reference, (para 2.3.17) has categorically stated as under: "The TPO has correctly assumed the total benefits granted to the employees of the assessee at Rs....