WATERMARK RESIDENCY LIMITED,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX , CIRCLE-17(2), HYDERABAD

In the result, the appeals of the assessee vide ITA Nos

Bench: Before Shri Rama Kanta Panda & Shri Laliet Kumar

Transfer Pricing Officer (TPO) carefully. The prime lending rate of state Bank of India prevailing + p.a adopted by the tax payer cannot be treated as Arms Length Price. The LIBOR is the rate applicable in the transactions between the banks which is accepted internationally. In the following cases LIBOR was accepted as appropriate rate for bench marking purposes: 1. Aurionpro

WATERMARK RESIDENCY LIMITED, ,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX , CIRCLE-17(2), HYDERABAD

In the result, the appeals of the assessee vide ITA Nos

Bench: Before Shri Rama Kanta Panda & Shri Laliet Kumar

Transfer Pricing Officer (TPO) carefully. The prime lending rate of state Bank of India prevailing + p.a adopted by the tax payer cannot be treated as Arms Length Price. The LIBOR is the rate applicable in the transactions between the banks which is accepted internationally. In the following cases LIBOR was accepted as appropriate rate for bench marking purposes: 1. Aurionpro

MICROSOFT GLOBAL SERVICES CENTRE (INDIA) PRIVATE LIMITED,HYDERABAD vs. DCIT, CIRCLE-5(1), HYDERABAD

In the result, the appeal of the assessee is allowed for statistical purposes

Bench: Shri R.K. Panda & Shri Laliet Kumar

Transfer Pricing adjustment in respect of Software Development Segment of the taxpayer's international transactions. Further, vide application u/s 154 dated 20-02-2020, the taxpayer has requested for exclusion of TDS

FACEBOOK INDIA SERVICES PRIVATE LIMITED ,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX , CIRCLE-17(1), HYDERABAD

In the result, the appeal of the assessee is partly allowed for statistical purposes

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2014-15 Facebook India Online Services Vs. The Deputy Commissioner Private Limited, Of Income Tax, 12Th Floor, Building No.20, Circle – 17(1), Unit 1203 & 1204, Hitech City, Hyderabad. Madhapaur, Hyderabad. Pan : Aabcf5150G. (Appellant) (Respondent) Assessee By: Shri Dhanesh Bafna & Chandni Shah Revenue By: Shri Rajendra Kumar – Cit-Dr Date Of Hearing: 20.07.2022 Date Of Pronouncement: 19.09.2022

Transfer Pricing additions, no other grounds are pressed by the ld.AR. 8 6. We are considering the exclusion / inclusion of the above said comparable companies in the following paragraphs : I. ECLERX SERVICES LIMITED. 7. The ld.AR for the assessee has submitted that Eclerx Services Limited is required to be excluded from the list of comparables as OP/OC of this company

EPAM SYSTEMS INDIA PRIVATE LIMITED,HYDERABAD vs. DCIT, CIRCLE -8 (1), HYDERABAD

In the result, both the appeals of the Assessee are allowed

Bench: Shri Vijay Pal Rao & Shri Manjunatha G.आ.अपी.सं /Ita Nos.83 & 498/Hyd/2022 Assessment Years 2017-2018 & 2018-2019 Epam Systems India The Dcit & The Acit, Private Limited, Vs. Circle-8(1), Hyderabad – 500 081 Hyderabad. Pan Aaacw2012R (Appellant) (Respondent) िनधा"रती "ारा /Assessee By: Ca Shreyas Sardesai राज" व "ारा /Revenue By: Ms U Mini Chandran, Cit-Dr

Transfer Pricing Adjustment of INR 38,70,851/- to the international transaction relating to Employee compensation benefit/ESOP 5 ITA.Nos.83 and 498/Hyd./2022 4:1 The learned AO/TPO/DRP has erred in making an upward adjustment of INR 38,70,851/-to the total income of the Appellant by holding that recovery from AE with respect to TDS

EPAM SYSTEMS INDIA PRIVATE LIMITED,HYDERABAD vs. ACIT, CIRCLE-8(1), HYDERABAD

In the result, both the appeals of the Assessee are allowed

Bench: Shri Vijay Pal Rao & Shri Manjunatha G.आ.अपी.सं /Ita Nos.83 & 498/Hyd/2022 Assessment Years 2017-2018 & 2018-2019 Epam Systems India The Dcit & The Acit, Private Limited, Vs. Circle-8(1), Hyderabad – 500 081 Hyderabad. Pan Aaacw2012R (Appellant) (Respondent) िनधा"रती "ारा /Assessee By: Ca Shreyas Sardesai राज" व "ारा /Revenue By: Ms U Mini Chandran, Cit-Dr

Transfer Pricing Adjustment of INR 38,70,851/- to the international transaction relating to Employee compensation benefit/ESOP 5 ITA.Nos.83 and 498/Hyd./2022 4:1 The learned AO/TPO/DRP has erred in making an upward adjustment of INR 38,70,851/-to the total income of the Appellant by holding that recovery from AE with respect to TDS

ADP PRIVATE LIMITED,HYDERABAD, TELANGANA vs. DCIT., CIRCLE 1(1), HYDERABAD, TELANGANA

In the result, the appeal filed by the assessee is allowed in terms of our observations given hereinabove

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

transfer pricing adjustment in the nature of notional interest on receivables amounting to Rs. 5,08,183. 8 ADP Private Limited b) Not appreciating that the receivables are consequential/closely linked to the principal transaction of provision of services and hence have been aggregated for determination of Arm's Length Price ('ALP') under Transactional Net Margin Method ('TNMM'). c) Not appreciating

ADP PRIVATE LIMITED (31/10/2015),RANGA REDDY vs. DCIT, CIRCLE-1( 1), HYDERABAD

In the result, both the appeals are partly allowed for statistical purposes in above terms

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

transfer pricing adjustment in the nature of notional interest on receivables amounting to Rs. 1,23,24,559. 16. On the fact, and circumstances of the case and in contrary to law, the addition made by the Ld. TPO with respect to interest on outstanding receivables is untenable and be deleted since the addition has been made by computing interest

ADP PRIVATE LIMITED,RANGA REDDY vs. DCIT, CIRCLE-1( 1), HYDERABAD

In the result, both the appeals are partly allowed for statistical purposes in above terms

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

transfer pricing adjustment in the nature of notional interest on receivables amounting to Rs. 1,23,24,559. 16. On the fact, and circumstances of the case and in contrary to law, the addition made by the Ld. TPO with respect to interest on outstanding receivables is untenable and be deleted since the addition has been made by computing interest

SATYAM VENTURE ENGINEERING SERVICES PRIVATE LIMITED,SECUNDERABAD vs. ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(2), HYDERABAD

In the result, the assessee’s appeal for the A

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman, Accountant Memebr Assessment Year: 2012-13 &

transfer pricing adjustments. He held the transaction of provision of Information Technology Engineering Services (ITeS in short) to be within (+/-) 5% of the average margin of the comparables and hence he did not propose any adjustment. Further, with regard to reimbursement of expenses also the transaction was held to be at arm’s length price. The A.O, thereafter, observed that

SATYAM VENTURE ENGINEERING SERVICES PRIVATE LIMITED,SECUNDERABAD vs. ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(2), HYDERABAD

In the result, the assessee’s appeal for the A

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman, Accountant Memebr Assessment Year: 2012-13 &

transfer pricing adjustments. He held the transaction of provision of Information Technology Engineering Services (ITeS in short) to be within (+/-) 5% of the average margin of the comparables and hence he did not propose any adjustment. Further, with regard to reimbursement of expenses also the transaction was held to be at arm’s length price. The A.O, thereafter, observed that

SATYAM VENTURE ENGINEERING SERVICES PRIVATE LIMITED, ,SECUNDERABAD vs. ACIT,CENTRAL CIRCLE-3(2), HYD, HYDERABAD

In the result, the assessee’s appeal for the A

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahman, Accountant Memebr Assessment Year: 2012-13 &

transfer pricing adjustments. He held the transaction of provision of Information Technology Engineering Services (ITeS in short) to be within (+/-) 5% of the average margin of the comparables and hence he did not propose any adjustment. Further, with regard to reimbursement of expenses also the transaction was held to be at arm’s length price. The A.O, thereafter, observed that

DY. COMMISSIONER OF INCOME TAX ,(INTERNATIONAL TAXATION)-1, HYDERABAD vs. FAIR FIELD DEVELOPMENT LIMITED , CYPRUS

In the result, the appeal of Revenue in ITA

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2014-15 M/S. Fairfield Developments Vs. Dy. Commissioner Of Income Limited, Tax, Hyderabad. International Taxation – 1 Pan : Aabcf3158N Hyderabad. (Appellant) (Respondent) Ita 488/Hyd/2019 Assessment Year 2014-15 Dy. Commissioner Of Income Vs. M/S. Fairfield Developments Tax, Limited, International Taxation – 1, Hyderabad. Hyderabad. Pan : Aabcf3158N (Appellant) (Respondent) Assessee By: Shri Akshay Surana & Siddharth Surana, C.A Revenue By: Shri K.P.R.R. Murthy Date Of Hearing: 27.03.2023 Date Of Pronouncement: 25.04.2023 O R D E R Per Laliet Kumar, J.M. These Two Appeals Filed By The Assessee & The Revenue, Respectively, Are Directed Against The Order Of Commissioner Of Income Tax (Appeals) – 10, Hyderabad Dated 16.01.2019 For The Assessment Year 2014-15. 2 M/S. Fairfield Developments Limited

TDS made by WRPL. However, the appellant revised the return by claiming benefit of special rate of tax @ 10% relying on Article 11(2) of the India-Cyprus Double Tax Avoidance Agreement (DTAA) and offering nil income with a claim for refund of Rs.5,47,74,900/-. 8.1 The case was referred to the Transfer Pricing

FAIRFIELD DEVELOPMENT LIMITED ,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX ,(INTERNATIONAL TAXATION), HYDERABAD

In the result, the appeal of Revenue in ITA

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2014-15 M/S. Fairfield Developments Vs. Dy. Commissioner Of Income Limited, Tax, Hyderabad. International Taxation – 1 Pan : Aabcf3158N Hyderabad. (Appellant) (Respondent) Ita 488/Hyd/2019 Assessment Year 2014-15 Dy. Commissioner Of Income Vs. M/S. Fairfield Developments Tax, Limited, International Taxation – 1, Hyderabad. Hyderabad. Pan : Aabcf3158N (Appellant) (Respondent) Assessee By: Shri Akshay Surana & Siddharth Surana, C.A Revenue By: Shri K.P.R.R. Murthy Date Of Hearing: 27.03.2023 Date Of Pronouncement: 25.04.2023 O R D E R Per Laliet Kumar, J.M. These Two Appeals Filed By The Assessee & The Revenue, Respectively, Are Directed Against The Order Of Commissioner Of Income Tax (Appeals) – 10, Hyderabad Dated 16.01.2019 For The Assessment Year 2014-15. 2 M/S. Fairfield Developments Limited

TDS made by WRPL. However, the appellant revised the return by claiming benefit of special rate of tax @ 10% relying on Article 11(2) of the India-Cyprus Double Tax Avoidance Agreement (DTAA) and offering nil income with a claim for refund of Rs.5,47,74,900/-. 8.1 The case was referred to the Transfer Pricing

SHAKTI HORMANN PRIVATE LIMITED,HYDERABAD vs. DCIT CIRCLE -3(1), HYDERABAD

In the result, appeals filed by the assessee for both the assessment years 2017-18 and 2018-19 are partly allowed

Bench: Shri Vijay Pal Rao & Shri Manjunatha G.आ.अपी.सं /Ita-Tp No.451/Hyd/2022 & 452/Hyd/2022 (निर्धारण वर्ा/Assessment Year: 2017-18 & 2018-19) Shakti Hormann Private Vs. Asst.Commissioner Of Limited Income Tax Hyderabad Circle-3(1) [Pan : Aadcs4024Q] Hyderabad (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao, Ar रधजस् व द्वधरध/Revenue By: Shri B.Bala Krishna, Cit-Dr सुिवधई की तधरीख/Date Of Hearing: 15/04/2025 घोर्णध की तधरीख/ 21/04/2025 Date Of Pronouncement: आदेश / Order Per Vijay Pal Rao: These Appeals Filed By The Assessee Are Directed Against The Assessment Orders Dated 21.07.2022 & 28.07.2022 Passed U/S 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961 (“The Act”) In Pursuant To The Directions Of The Dispute Resolution Panel (“The Drp”) U/S 144C(5) Of The Act For The Assessment Year 2017-18 & 2018-19 Respectively. 2. For The Assessment Year 2017-18, The Assessee Has Raised The Following Grounds Of Appeal :

price. He has further contended that the TPO is not justified in determining the ALP at Nil, when there is agreement between the parties for transfer of know-how and licence as well as trademark, against which the assessee has paid the royalty as per the terms of the agreement. In support of his contentions, he has relied upon

DR. REDDYS, LABORATORIES LIMITED,HYDERABAD vs. ACIT, CIRCLE-8(1), HYDERABAD

In the result, both the appeals of the Assessee are allowed

Bench: Shri Vijay Pal Rao & Shri Manjunatha G.आ.अपी.सं /Ita Nos.490 & 491/Hyd/2022 Assessment Years 2017-2018 & 2018-2019 Dr. Reddy’S Laboratories Limited, Hyderabad. The Acit, Vs. Pin – 500 034. Circle-8(1), Hyderabad – Telangana. 500 084. Pan Aaacd7999Q (Appellant) (Respondent) िनधा"रती "ारा /Assessee By: Ca Padamchand Khincha राज" व "ारा /Revenue By: Ms. U Mini Chandran, Cit-Dr

Transfer Pricing Adjustment 2. That on the facts and circumstances of the case and in law, the TPO/AO/DRP erred in determination of Arm's Length Price ("ALP") in respect of international loans to overseas Associated Enterprises by:  Directing the Ld. A.O/TPO to adopt the LIBOR rate applicable for the year under consideration+200 basis points to arrive at ALP instead

DR. REDDYS, LABORATORIES LIMITED,HYDERABAD vs. ACIT, CIRCLE-8(1), HYDERABAD

In the result, both the appeals of the Assessee are allowed

Bench: Shri Vijay Pal Rao & Shri Manjunatha G.आ.अपी.सं /Ita Nos.490 & 491/Hyd/2022 Assessment Years 2017-2018 & 2018-2019 Dr. Reddy’S Laboratories Limited, Hyderabad. The Acit, Vs. Pin – 500 034. Circle-8(1), Hyderabad – Telangana. 500 084. Pan Aaacd7999Q (Appellant) (Respondent) िनधा"रती "ारा /Assessee By: Ca Padamchand Khincha राज" व "ारा /Revenue By: Ms. U Mini Chandran, Cit-Dr

Transfer Pricing Adjustment 2. That on the facts and circumstances of the case and in law, the TPO/AO/DRP erred in determination of Arm's Length Price ("ALP") in respect of international loans to overseas Associated Enterprises by:  Directing the Ld. A.O/TPO to adopt the LIBOR rate applicable for the year under consideration+200 basis points to arrive at ALP instead

SHAKTI HORMANN PRIVATE LIMITED,HYDERABAD vs. DCIT, CIRCLE-3(1), HYDERABAD

Bench: Shri Manjunatha G. & Shri Ravish Soodआ.अपी.सं /Ita No.917/Hyd/2024 (निर्धारण वर्ष/Assessment Year:2020-21) Shakti Hormann Private Limited, Hyderabad. Vs. Dcit, Circle-3(1), Hyderabad. Pan: Aadcs4024Q (Appellant) (Respondent) निर्धारिती द्वारा / Assessee By: Shri P. Murali Mohan Rao, Ca राजस्व द्वारा / Revenue By: Ms. U. Mini Chandran, Cit-Dr सुनवाई की तारीख /Date Of Hearing: 15/10/2025 घोषणा की तारीख / Date Of 19/12/2025 Pronouncement: आदेश / Order Per. Ravish Sood, J.M: The Present Appeal Filed By The Assessee Company Is Directed Against The Final Assessment Order Passed By The Assessing Officer (For Short, “A.O.”) Under Section 143(3) R.W.S 144C(13) R.W.S 144B Of The Income Tax Act, 1961 (For Short, “The Act”) Dated 25/07/2024 For The

Transfer Pricing adjustments aggregating to Rs.35,50,088/-, viz., (i) Royalty: Rs.28,87,492/-; (ii) Interest on unsecured compulsorily convertible debentures (UCCDs): Rs.5,42,937/- and (iii) Interest on trade receivables: Rs.1,19,659/-. 5. The AO further examined various corporate tax issues pursuant to the notices issued under section 142(1) of the Act. In response, the assessee company