2026 (6) TMI 555

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.... issued by the learned Dispute Resolution Panel - 2, Bangalore ("learned DRP"), under section 144C(5) of the Act, for the assessment year 2022-23. 2. During the hearing, the learned Authorised Representative ("learned AR"), at the outset, submitted that the impugned final assessment order is not in conformity with the directions issued by the learned DRP, and therefore, is in contravention of the provisions of section 144C(13) of the Act. 3. On the other hand, the learned Departmental Representative duly supported the final assessment order passed in the present case. 4. We have considered the submissions of both sides and perused the materials available on record. The brief facts of the case are that the assessee is engaged in the....

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.... the learned DRP vide its directions rejected the grounds of objections filed by the assessee. Thus, the AO held that the addition made in the draft assessment order stands. Being aggrieved, the assessee is in appeal before us. 7. During the hearing, the learned AR submitted that the TPO vide order dated 24.12.2025 gave effect to the directions issued by the DRP, and consequently, the transfer pricing adjustment in respect of the Software Development Segment was reduced to NIL as against the adjustment of Rs. 15,88,10,000/- proposed by the TPO vide order passed under section 92CA(3) of the Act. The learned AR submitted that the transfer pricing adjustments in respect of the ITeS segment and interest on delayed receivables remained the sa....

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...., from the perusal of the order giving effect passed by the TPO pursuant to the directions issued by the learned DRP, it is evident that the learned DRP granted partial relief to the assessee as against the findings of the AO vide final assessment order that the objections filed by the assessee were rejected by the learned DRP. 10. Since the AO passed the impugned final assessment order not in compliance with the specific directions of the learned DRP, respectfully following the decisions of the Hon'ble Jurisdictional High Court cited supra, we of the considered view that the same is in clear violation of the provisions of section 144C(13) of the Act which specifically mandates the passing of a final assessment order in conformity with t....