2026 (9) TMI 51

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....red to as "the Act") for A.Y. 2022-23. 2. The brief facts of the case are that as pleaded by Assessee are : "1. The assessee is a Private Limited Company incorporated under the Companies Act, 1956 and having PAN No. AADCT5044P. 2. The assessee Company has filed its Income Tax Return for the Assessment Year 2022-2023 on 28/02/2022 declaring taxable income at NIL. 3. The case was selected for scrutiny through CASS for the AY 2022-23 under TP risk parameters for the reason of large value of international transactions. Notice u/s 143 (2) was issued on 01.06.2023. 4. The case was referred to the Transfer Pricing Officer (TPO) u/s 92CA(1) of the Income Tax Act, 1961 on 20/06/2023. 5. The TPO, Addl. ....

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....sessee u/s 143(3) r.w.s. 144C(13) & 144B of the Income Tax Act, 1961 for Ayr 2022-23 at Rs. 79,83,480/- against the NIL declared income by the assessee. Ground No. 02 Ld. AO/DRP/TPO has erred in making an adjustment in arm's length price against the provisions of section of 92C of Income Tax Act, 1961. Ground No. 03 Ld. AO/DRP/TPO has erred in law and facts of the case in disregarding the segmental analysis and instead, considering entity's wide approach for determination of arm's length price. Ground No. 04 Ld. AO/DRP/TPO has erred in law and facts of the case in computing Profit Level Indicator (PLI) for determination and comparison of arm's length price. Groun....

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....pellant/assessee submitted that Ld. TPO in the earlier assessment year 2022-23 and subsequent assessment year 2023-24, Ld. TPO did not make any additions. In the present assessment year, ld. AO rejected assessee's accounts. Ld. TPO failed to consider segmentals separately Hon'ble DRP did not discuss the merits, therefore, the matter may be restored to the file of ld. TPO. 5. Ld. Departmental Representative relied on impugned order. 6. From examination of record in light of aforesaid rival contention, it is crystal clear that the appellant/assessee company filed return of income on 28.02.2022 declaring taxable income of Rs. Nil after setting off of brought forward losses of Rs. 3,97,25,200/-. The case was selected for scrutiny through ....