UST GLOBAL TECHNOLOGY SERVICES (INDIA) PRIVATE LIMITED,KOCHI vs. DCIT,CORPORATE CIRCLE 2(1), KOCHI

ITA 1071/COCH/2024Status: DisposedITAT Cochin08 September 2025AY 2021-2212 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found merit in the assessee's submission that the TPO should have applied an upper turnover limit filter when selecting comparable companies. Therefore, the benchmarking exercise was flawed, and the matter was remanded for fresh benchmarking.

What were the facts?

The assessee, engaged in IT services, reported international transactions. The TPO made adjustments for software development and interest on delayed receivables, rejecting the assessee's TP study. The DRP dismissed objections, and the AO passed a final assessment order with additions.

What were the issues?

Whether the TPO erred in selecting comparable companies for benchmarking international transactions without applying an upper turnover limit. The treatment of interest on delayed receivables as a separate international transaction was also a key issue.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 143(3),Section 144C(13),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH :: COCHIN

Before: SHRI INTURI RAMA RAO, AM & SHRI RAHUL CHAUDHARY

For Respondent: Shri Rajakannam, Advocate, Shri Sanjit Kumar Das, CIT-DR
Pronounced: 22.08.2025

Heard together (2 matters)

ITA No. 1071/Coch/2024
S.A.No. 66/Coch/2025

Read from the judgment's own cause title. This page is filed under one of them.

Per Inturi Rama Rao, AM: This is an appeal filed by the Assessee-company directed against the final assessment order dated 23/10/2024 passed u/s. 1433 r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 (for short, 'the Act') for Assessment Year (AY) 2021-22. 2 S.A.No. 66/Coch/2025 & ITA No. 1071/Coch/2024 (UST Global Technology Services (I) P. Ltd.

Brief facts of the case are that the appellant is a company duly incorporated under the provisions of Companies Act, 1956. It is engaged in the business of providing IT services to its associated enterprises (AEs) and it is a subsidiary of US

The order continues below.

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