2025 (7) TMI 1847

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....ssee is a company, declaring total income at INR 1,52,79,96,910/- in the return of income filed on 29.11.2014. Since the assessee has entered into international transactions therefore, the matter was referred to TPO for determination of the Arm's Length Price ("ALP") of such transactions. The TPO vide order dated NIL has proposed certain adjustments and accordingly, the draft assessment order was passed on 11.12.2017 wherein the adjustment to the tune of INR 52,26,19,385/- as proposed by TPO were added and total income was proposed at INR 2,05,06,16,300/-. 3. Against the said order, the assessee has not filed any objections before Ld. Dispute Resolution Panel ("DRP") and thus, the AO has passed final assessment order on 23.02.2018 wherei....

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....deration. 3. On the facts and circumstances of the case and in law, the Ld. AO/Ld. TPO/Ld. CIT(A) erred in treating provision written back (amounting to INR 25.79 lakhs) as non-operating in nature on alleged ground that provision written back being an extra-ordinary item, thus cannot be treated operating in nature while computing the Profit Level Indicator ('PLI"). 4. On the facts and circumstances of the case and in law, the Ld. AO/Ld. TPO/Ld. CIT(A) erred in not including the comparable namely Karvy Data Mgmt. Services Ltd. and ACE BPO Services Pvt Ltd, though both such comparables satisfied the filters proposed by the Ld. TPO and being engaged in the similar line of business of appellant. 5. On the facts an....

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....company would be at rate mentioned in section 115-O and not at rate of tax applicable to non-resident shareholder(s) as specified in relevant DTAA with reference to such dividend income - Held, yes - Whether DDT is a charge to tax on profits of company and not a charge in hands of shareholder or tax paid on behalf of shareholder by domestic company, and therefore, DTAA does not get triggered at all when a domestic company pays DDT under section 115-O Held, yes Whether, however, wherever contracting states to a tax treaty intend to extend treaty protection to domestic company paying dividend distribution tax, only then, domestic company can claim benefit of DTAA -Held, yes [Paras 77, 82 and 83] [In favour of revenue]." 8. The assessee in ....