OSI Energy Automation India Private Ltd. vs. The Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, OSI Energy Automation India Private Ltd., is a company involved in the business of sale, marketing, production, development, transformation, designing, creating, supporting, and providing innovative solutions in respect of automation systems. It filed its return of income for the assessment year 2021-22 declaring Nil income. The case was selected for scrutiny, and since international transactions with associated enterprises were involved, the Assessing Officer (AO) made a reference to the Transfer Pricing Officer (TPO) for determining the arm’s length price (ALP). The TPO proposed an adjustment of Rs. 2,59,43,431 on account of ALP adjustment. The AO passed a draft assessment order, and the assessee filed objections before the Designated Rectification Panel (DRP). The DRP confirmed the adjustment made by the TPO, leading the assessee to file an appeal before the Tribunal.…

Legal Issues

• 1. Inclusion of Infomile Technology P. Ltd. as a comparable in the TP study.
• 2. Exclusion of comparables having turnover of more than Rs. 200 crores.
• 3. Computation of interest on receivables @ LIBOR + 200 basis points.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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