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RESERVED ON 28^TH SEPTEMBER 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28^TH DAY OF OCTOBER, 2026 PRESENT THE HON’BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON’BLE MRS. JUSTICE K.S. HEMALEKHA INCOME TAX APPEAL NO. 338 OF 2013 BETWEEN:

1. THE COMMISSIONER OF INCOME-TAX C.R. BUILDING, QUEENS ROAD, BANGALORE

2. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE- 11 (5)

RASHTROTHANA BHAVAN NRUPATHUNGA ROAD, BANGALORE …APPELLANTS (BY SRI E.I. SANMATHI, ADVOCATE)

AND:

Digita lly signed by VEERENDRA 1. M/S. LOGICA PRIVATE LTD.

KUMAR K M DIVYASREE TECHNOPOLIS Location: High NO.124-125, YEMLUR P.O., OFF. AIRPORT ROAD Court of BANGALORE – 560 037 Karnataka NOW MERGED WITH CGI INFORMATION SYSTEMS AND MANAGEMENT CONSULTANTS PVT. LTD. #95/1 & 95/2, ELECTRONIC CITY, TOWER-2, ELECTRONIC CITY PHASE-1, WEST BANGALORE-560100, AS PER MEMO DATED 26.09.2026 FILED BY ADVOCATE FOR RESPONDENT, VIDE ORDER DATED 28.09.2026 …RESPONDENT (BY MS. TANMAYEE RAJKUMAR, ADVOCATE FOR MS. MANASA ANANTHAN, ADVOCATE)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961 PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BANGALORE IN ITA No.1129/Bang/2011 DATED 28/02/2013 AND CONFIRM THE ORDER PASSED BY THE DISPUTE RESOLUTION PANEL CONFIRMING THE TRANSFER PRICING ADJUSTMENT BY THE TRANSFER PRICING OFFICER AND CONSEQUENTLY CONFIRM THE ORDER OF ASSESSMENT PASSED BY THE ASSISTANT COMMISIONER OF INCOME TAX, CIRLCE 11(5), BANGALORE & ETC.

THIS INCOME TAX APPEAL HAVING BEEN HEARD AND RESERVED FOR JUDGMENT, COMING ON FOR PRONOUNCEMENT THIS DAY, JUDGMENT WAS PRONOUNCED AS UNDER:

CORAM: HON’BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON’BLE MRS. JUSTICE K.S. HEMALEKHA C.A.V. JUDGMENT (PER: HON’BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

1. The Revenue has filed the present appeal under Section 260A of the Income Tax Act, 1961 [the Act], impugning an order dated 28.02.2013 [impugned order] passed by the learned Income-Tax Appellate Tribunal, Bengaluru [ITAT] in ITA No.1129/Bang/2011, in respect of assessment year [AY] 2007-08.

2. The said appeal was preferred by the respondent [Assessee] against the Assessment Order dated 20.09.2011 passed by the Assessing Officer [AO] under Section 143(3) read with Sections 144C(5) and 144C(8) of the Act, pursuant to the directions dated 02.09.2011 issued by the Dispute Resolution Panel [DRP].

3. The present appeal was admitted on 24.03.2014 on the following questions of law as projected by the Revenue.

“1. Whether on the facts and in the circumstances of the case and in law the Tribunal was right in super imposing the decisions of the other benches and the decision of the ITAT while rejecting the comparables ( (i) Accel Transmatic Limited, (ii) Avani Cimcon Technologies Limited, (iii) Celestial Labs Limited, (iv) KALS Information Systems Limited, (v) Lucid Software Limited, (vi) Infosys Technologies Limited, (vii) Wipro Limited – IT Segment and (viii) Tata Elxsi Limited) without appreciating the fact that selection of comparables in a case depends on assessee specific FAR analysis and recorded a perverse finding?

2. Whether on the facts and in the circumstances of the case and in law the Tribunal was right in directing that the segmental financials have to be considered as against the enterprise financials without appreciating the fact that at the enterprise level the comparable satisfied all the filters applied by the Transfer Pricing Officer and recorded a perverse finding?

3. Whether on the facts and in the circumstances of the case and in law the Tribunal was right in directing that segmental financials have to be considered as against the enterprise level financials without appreciating the fact the Transfer Pricing Officer attracted the enterprise level financials as against the segmental financials with which he started, on the basis of the information gathered under Section 133(6) of the Act and detailed analysis thereof and recorded a perverse finding?