The Tax Publishers2020 TaxPub(DT) 3103 (Bang-Trib) : (2020) 083 ITR (Trib) 0393

INCOME TAX ACT, 1961

Section 144C(8)

Mere observation of DRP that employee cost of Accropetal Technologies Ltd. was less than 25% of its total cost could not be construed as a set aside of issue to TPO and hence, there was no violation of section 144C(8).

Assessment - Dispute Resolution Panel - Whether direction of DRP can be considered as set aside of issue to TPO -

Assessee rendered software development services to its AE abroad. TPO considered Acropetal Technologies Ltd. as comparable to assessee's case. DRP directed TPO to apply 25% employees cost filter and accordingly exclude Acropetal Technologies Ltd. Revenue's case was that DRP set aside issue for consideration to TPO and in terms of section 144C(8), DRP had to decide issues before it and could not set aside issues to TPO. Held: Observations of DRP were mere finding that employee cost of Accropetal Technologies Ltd. was less than 25% of its total cost. Such directions of DRP could not be construed as a set aside of issue to TPO. There was no merits in ground raised by revenue.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

INCOME TAX ACT, 1961

Section 92C

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