आयकर अपील(cid:547)य अ(cid:876)धकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B’ Bench, Hyderabad BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G. ACCOUNTANT MEMBER आ.अपी.सं /ITA No.1358/Hyd/2024 Assessment Year 2021-2022 DSM Shared Services India Private Limited, The DCIT, Circle-8(1), Hyderabad – 500 081. vs. Hyderabad – 500 081.

Telangana. Telangana.

PAN AADCD8407C (Appellant) (Respondent)

िनधा१ौरती (cid:554)ारा /Assessee by: CA Aliasgar Rampurawala राज(cid:830) व (cid:554)ारा /Revenue by: Dr. Narendra Kumar Naik, CIT-DR सुनवाई की तारीख/Date of hearing: 09.12.2025 घोषणा की तारीख/Pronouncement: 12.12.2025 आदेश/ORDER PER VIJAY PAL RAO, VICE PRESIDENT :

This appeal by the Assessee is directed against the Final Assessment Order dated 23.10.2024 passed by the Assessing Officer u/sec.143(3) r.w.s.144C(13) r.w.s.144B of the Income Tax Act [in short "the Act"], 1961, for the assessment year 2021-2022.

2. The has raised the following grounds of appeal :

“Each of the grounds and/ or sub-grounds of the appeal mentioned here-in are independent and without prejudice to each other.

I. General Ground

1. On the facts and circumstances of the case and in law, the final assessment order dated October 23, 2024 ("Impugned Order) passed by the Assessment Unit, Income Tax Department ("Ld. AO), pursuant to the Directions dated September 18, 2024 ('DRP Directions) issued by the Hon'ble Dispute Resolution Panel, Bengaluru ("Hon’ble DRP), and under section 143(3) read with section 144C(13) read with section 1448 of the Act is arbitrary contrary to law and liable to be quashed.

II. Legal Ground

2. On the facts and circumstances of the case and in law, the final assessment order dated 23 October 2024, passed by the Ld. AO under section 143(3) r.w.s. 144C (13) r.w.s. 1448 of the Act is barred by limitation under section 153 of the Act, and is thus void, bad in law and liable to be quashed.

III. TRANSFER PRICING (TP) ADJUSTMENT TOWARDS INFORMATION TECHNOLOGY ENABLED SERVICES ("ITeS")

3. On the facts and circumstances of the case and in law, the Hon'ble DRP erred in upholding the action of the Leamed Transfer Pricing Officer ('Ld. TPO')/ Ld. AO in making a transfer pricing adjustment of INR 8,60,80,441 towards provision of ITes.

4. On the facts and circumstances of the case and in law, the Hon'ble DRP/Ld. AO/TPO have further erred in :

a. rejecting the economic analysis carried out in TP documentation which was maintained in good faith and with due diligence despite satisfying conditions prescribed under Section 92C(3) of the Act;

b. rejecting certain fitters criteria adopted in TP documentation and application of certain filters which are not relevant to the Appellant.

c. not adopting the upper turnover filter while doing the comparability analysis for the Appellant's international transaction under the segment.

d. including following companies which are not functionally comparable to the Appellant:

I. Infosys BPM Ltd.

II. Integra Software Services Pvt. Ltd.

III. Sutherland Global Services Pvt. Ltd.

IV. Vitae International Accounting Services Private Limited.

V. Inteq BPO Services Pvt. Ltd.

VI. Interactive Manpower Solution Pvt. Ltd.

VII. MPS Ltd.

VIII. TTEC India Customer Solutions Pvt. Ltd.

IX. Canam Consultants Ltd.

e. excluding the following companies which are functionally comparable to the Appellant:

I. Allsec Technologies Limited II. Cosmic Global Limited III. DKM Online Pvt Ltd N.

IV. Expect More BPO Solutions Pvt Ltd V. R Systems International Limited - Business Process Outsourcing Segment VI. Vertex Customer Management India Pvt Ltd VII. Virinchi Ltd - IT enabled services f. On the facts and circumstances of the case and in law, Ld. TPO/Ld. AO erred in:

I. Not considering provision for bad and doubtful debts as operating expense while computing the operating profit mark-up.

II. Not considering rates and taxes as operating expense while computing the operating profit mark-up.

III. Including miscellaneous income and other income as a part of