CAPITA INDIA PRIVATE LIMITED,MUMBAI vs. ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE (NFAC), MUMBAI

ITA 4954/MUM/2024Status: DisposedITAT Mumbai07 April 202513 pages
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What did the Tribunal hold?

The Tribunal directed the exclusion of MPS Limited as a comparable due to functional dissimilarities and the absence of segmental data, following its own previous decision. Regarding R. Systems International Limited, the Tribunal found that quarterly audited accounts were available, allowing for extrapolation to the financial year, and directed its inclusion as a comparable, reversing the TPO's exclusion based on a different accounting year.

What were the facts?

The assessee, Capita India Private Limited, engaged in IT services, filed its return of income for AY 2020-2021. The case was selected for scrutiny, and a reference was made to the Transfer Pricing Officer (TPO) due to international transactions with associated enterprises. The TPO proposed transfer pricing adjustments, which were subsequently modified by the Assessing Officer (AO) based on DRP directions, leading to an increased total income.

What were the issues?

The key issues revolve around the inclusion/exclusion of specific companies as comparables in transfer pricing analysis and the correctness of transfer pricing adjustments made by the TPO/AO.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 144B,Section 92CA,Section 92C,Section 153,Section 115P,Section 234A,Section 234B

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Income Tax Appellate Tribunal, “K” BENCH, MUMBAI

Per Rahul Chaudhary, Judicial Member:

1.

The present appeal has been preferred by the Assessee against the Final Assessment Order, dated 29/07/2024, passed by the Assessing Officer under Section 143(3) read with Section 144C(13) read with Section 144B of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'], as per the directions issued by Commissioner of Income Tax (Dispute Resolution Panel (1)), Mumbai-2 [for short `DRP'] on 11/06/2024 under Section 144C(5) of the Act for the

The order continues below.

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