PEARSON INDIA EDUCATION SERVICES PRIVATE LIMITED,BANGALORE vs. DCIT CORPORATE CIRCLE 5(2), CHENNAI

आयकर अपीलीय अिधकरण, ‘डी’ �यायपीठ, चे�ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI �ी वी दुगा� राव, �याियक सद�य एवं �ी मंजुनाथ. जी, लेखा सद�य के सम� BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./IT(TP)A No.: 6/Chny/2020 िनधा�रण वष� / Assessment Year: 2015-16 Pearson India Education Service Deputy Commissioner of Private Limited, v. Income Tax, Ground Floor, A Wing, Corporate Circle 5(2), DivyaSree Chambers Chennai. O’Shaughnessy Road, Langford Gardens, Bangalore. 560 025. [PAN: AABCE-4944-M] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/Appellant by : Shri. K.R. Girish, CA and Shri. Rahul Chowdhary, CA : Dr. S. Palani Kumar, CIT ��यथ� क� ओर से/Respondent by सुनवाई क� तारीख/Date of Hearing : 14.03.2023 घोषणा क� तारीख/Date of Pronouncement : 22.03.2023 आदेश /O R D E R PER MANJUNATHA. G, ACCOUNTANT MEMBER:

This appeal filed by the assessee is directed against the final assessment order passed by the Assessing Officer u/s. 143(3) r.w.s. 92CA r.w.s. 144C(5) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”), dated 31.10.2019 in pursuant to DRP directions issued u/s. 144C(5) of the Act dated 19.09.2019 and pertains to assessment year 2015-16.

:-2-: IT(TP)A. No: 6/Chny/2020 2. The brief facts of the case are that, the appellant company is a wholly owned subsidiary of Pearson Singapore PTE limited and engaged in the business of publishing, school management, online tutorial and also imparting education from pre-school to degree level. The appellant had filed its return of income for assessment year 2015-16 on 29.11.2015, declaring a total loss of Rs. 48,85,25,664/- under normal provisions and Rs. 53,80,92,688/- u/s. 115JB of the Act. The case was selected for scrutiny and during the course of assessment proceedings, the case was referred to Transfer Pricing Officer for determining the arm length price in respect of transaction with associate enterprise. The AO has passed draft assessment order u/s. 143(3) r.w.s. 92CA(4) of the Act on 30.12.2018 and made TP adjustment as suggested by the TPO. Against the assessment order, the assessee has filed objection before DRP-2, Bangalore. The DRP, vide their directions dated 19.09.2019 issued u/s. 144C(5) of the Act, upheld the additions made by the AO towards transactions of the assessee with associate enterprise. The AO, passed final assessment order u/s. 143(3) r.w.s. 144C(5) of the Act, on 30.10.2019 and determined total loss of Rs. 17,59,25,729/- by making TP adjustment as suggested by the TPO and also setting off of brought forward loss. Aggrieved by

:-3-: IT(TP)A. No: 6/Chny/2020 the final assessment order, the assessee preferred an appeal before us.

:-4-: IT(TP)A. No: 6/Chny/2020 dated 31.10.2019, but in the computation sheet, he has taken only income from other source as per revised return filed by the assessee and determined taxes payable. Further, on the very same issue application filed by the assessee u/s. 154 of the Act is pending for disposal. Therefore, we are of the considered view that the issue needs to be set aside to the file of the AO and thus, we set aside the issue, qua, the issue of set off of brought forward business loss and direct the AO to re-examine the issue in light of details filed by the assessee and allow the set off of brought forward business loss against current year income.