TaxTMI 
TaxTMI 
2026 (9) TMI 1466
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....e has filed the present appeal under Section 260-A of the Income Tax Act, 1961 [the Act] impugning an order dated 22.05.2025 passed by the learned Income Tax Appellate Tribunal [ITAT] in Miscellaneous Application (MA No.06/BANG/2025) in IT(IT) A No.990/BANG/2023. The Revenue has projected the following substantial questions for consideration of this Court: "1. "Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in nature in holding that, since the transaction between the assessee and its subsidiary for the sale of software product has been made subject to Transfer Pricing Adjustment, the question of treating the Indian subsidiary as dependent agency permanent establishment do....
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....ts and services of the assessee only?" 2. Before examining the projected questions, it is necessary to note that the present appeal is confined to the impugned order passed in Miscellaneous Application [MA]. The Assessee had filed the said application, inter alia, seeking modification of the order dated 16.12.2024 passed by the learned ITAT in IT(IT)A No.990/BANG/2023, in as much as the learned ITAT had restored the matter to the file of the Assessing Officer [AO] "for a fresh adjudication in the light of its findings". 3. In the aforesaid context, the Assessee contended that in view of the Tribunal's definite finding that the question of treating the Assessee's Indian subsidiary as a Dependent Agent Permanent Establishment [DAPE]....
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....terprise may be taxed in [India] but only so much of them as is attributable to that permanent establishment." 6. According to the AO, the QIPL was a dependent agent of the Assessee, and therefore the profits of the business of the Assessee which are attributable to its DAPE would be assessable to tax under the Act. The AO noted that the revenue from the sale of products earned by QIPL was Rs.9687.02 lakhs and accordingly attributed 30% of the said amount (Rs.29,06,10.600) as income of the Assessee. 7. The Assessee assailed the same before the Dispute Resolution Panel [DRP], but was unsuccessful. Its appeal was rejected, and the AO issued the final assessment order. Thereafter, the Assessee filed an appeal before the learned ITAT chal....
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....the transaction between the Assessee and its subsidiary is a subject matter of the TPO adjustment, restoration of the matter to the AO for consideration afresh was not warranted. In this context, the Assessee filed the MA for modification of the order dated 16.12.2024, which was disposed of by the impugned order. The learned ITAT modified paragraph 10 of the order dated 16.12.2024 as under: "10. We have heard the rival contentions of both the parties and perused the materials available on record. On perusal of the order of the TPO in the case of the subsidiary company namely Qliktech India private limited, We find that the transaction between the assessee and its subsidiary for the sale of software product has been accepted as sale....