TaxTMI 
TaxTMI 
2026 (9) TMI 1230
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....ns dated 1 October 2025 issued by the Hon'ble Dispute Resolution Panel ('DRP') on following grounds, each of which is in the alternative and without prejudice to one another: General: 1. Whether on facts and circumstances of the case and in law, the learned Transfer Pricing Officer ('TPO') / the learned AO, under the directions of the Hon'ble DRP, have erred in assessing the Appellant's income as INR 14,47,26,517/- as against the returned income of INR 13,24,75,370? Payment of sub-licensing fees to Associated Enterprise (INR 1,22,51,147): 2. Whether on facts and circumstances of the case and in law, the learned AO has erred in making an addition of INR 1,22,51,147 to the Appellant's income on account of transfer pricing adjustment, without appreciating the fact that the variation between the arm's length price determined by the learned TPO (in pursuance of the DRP directions) and the price at which the international transaction was actually undertaken did not exceed thepercentage specified by the Central Government as per the second proviso to section 92C(2) of the Act? Without prejudice to the above: ....
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....se and in law, the final assessment order dated 26 November 2025 passed under section 143(3) read with section 144C(13) read with section 144B of the Act for AY 2022-23 is void and bad in law as it has been passed beyond the time limit prescribed under the provisions of section 153 of the Act? Short grant of TDS Credit 11. Whether on facts and circumstances of the case and in law, the learned AO has erred in not granting TDS credit of Rs. 3,68,003 claimed by the Appellant in the return of income and accepted in the Intimation order u/s. 143(1) of the Act dated 17 January 2023? Interest under section 234D: 12. Whether on facts and circumstances of the case and in law, the learned AO erred in levying interest under section 234D of the Act? Interest on Refund under section 244A: 13. Whether on facts and circumstances of the case and in law, the learned AO erred in not granting interest on refund in accordance with section 244A of the Act? Initiation of penalty under section 270A: 14. Whether on the facts and circumstances of the case and in law, the learned AO has erred in initiating penalty proceedings under sect....
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.... Resolution Panel. The Dispute Resolution Panel examined the Assessee's objections concerning the comparable companies selected by the TPO and partially accepting the assessee's objections directed exclusion of various comparable companies vide its order dated 01.10.2025. Based on the DRP directions, the set of comparable companies are as under: Sr. Name Margin 1. Creative Newtech Ltd. 2.47% 2. Softcell Technologies Global Pvt. Ltd. 2.55% 3. IvalueInfosolutions Pvt. Ltd. 5.24% 4. K7 Computing Pvt. Ltd. 7.14% Arithmetic Mean 4.35% Assessee's Margin 3.42% 4. Thereafter, pursuant to directions of the DRP, the Assessing Officer and the TPO made a transfer pricing adjustment of Rs. 1,22,51,147/- as under: Sr. Particulars Amount (Rs.) 8. Payment of sub-licensing fees (A) 105,54,88,276 9. Operating Revenue (B) 131,73,27,676 10. Operating Profit @3.42% shown by Assessee (C) 4,50,52,606 11. ALP Operating Profit @ 4.35% (D=B*4.35%) 5,73,03,753 12. Difference (E=C-D) 1,22,51,147 13. ALP Payment of sub-licensing fees (F=A-E) 1,04,32,....
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....tion or specified domestic transaction has actually been undertaken does not exceed one per cent. of the latter in respect of wholesale trading and three per cent. of the latter in all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm's length price for assessment year 2022-2023. Explanation.- For the purposes of this notification, "wholesale trading" means an international transaction or specified domestic transaction of trading in goods, which fulfils the following conditions, namely:- (i) purchase cost of finished goods is eighty per cent. or more of the total cost pertaining to such trading activities; and (ii) average monthly closing inventory of such goods is ten per cent. or less of sales pertaining to such trading activities." 6. The ld. AR submitted that in the present case, the range of 3% is applicable and not the 1% range, since the assessee is not engaged in "wholesale trading". The term "wholesale trading" is defined in the notification. It requires "trading of goods". The Assessee is engaged in the business of services and is not ....