2026 (9) TMI 757

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....44C(13) and 144B of the Income-tax Act, 1961 ("the Act"). The Assessee filed its return of income on 29 November 2022 declaring total income of Rs.7,10,68,153, which was assessed at Rs.9,50,92,840 after making a transfer pricing adjustment of Rs.2,40,24,687 in the software development services segment. The adjustment was made pursuant to the directions of the learned Dispute Resolution Panel-1, Bangalore ("the learned DRP") dated 28 November 2025, in relation to the draft assessment order dated 12 February 2025 passed under section 144C(1) of the Act, which had proposed an addition of Rs.3,16,79,178 based on the order of the learned Transfer Pricing Officer dated 24 January 2025 passed under section 92CA(3) of the Act. 2. The Assessee ha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... comparables to the Appellant, without establishing functional comparability. 8. The Hon'ble DRP/ Ld. AO / Ld. TPO erred in law and facts by rejecting comparable companies selected by the Appellant ('TP study') namely Rheal Software Limited and K-Cube Consultancy Services Pvt Ltd, despite these companies being functionally similar to the Appellant. 9. The Hon'ble DRP / Ld. AO / Ld. TPO erred in not applying an appropriate upper limit to reject companies having high turnover when compared to the Appellant, without appreciating the impact on the margin on account of difference in size and turnover of the companies. 10. The Hon'ble DRP / Ld. AO / Ld. TPO erred in law and facts by accepting companies namely, Happiest ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on of SWD services. 14. The Ld. AO erred in computing the Appellant's alleged tax demand and consequently erred in computing the amount of interest under the section 234B of the Act. 15. The Ld. AO has erred in levying interest under the section 234B of the Act. 16. The Ld. AO erred by initiating penalty proceedings under section 270A r.w.s 274 of the Act. The above grounds of appeal are without prejudice to each other and the Appellant craves leave to add or alter, by deletion, substitution or otherwise, the above grounds of appeal at any time before or during the hearing of this appeal. 3. At the hearing, the learned Authorised Representative, Ms. Tanmayee Rajkumar, Advocate, submitted that the Assessee ha....