Nasdaq Corporate Solutions (India) Private Limited (the “assessee”) had entered into a UAPA with CBDT covering FYs 2021-22 to 2025-26 and, for AY 2022-23, filed a modified return in accordance with the Unilateral Advance Pricing Agreement (“UAPA”); however, the TPO sustained the original TP adjustment while passing the order giving effect to DRP directions, which was subsequently retained by the AO.
Assessee’s Contentions | Revenue’s Contentions | Tribunal’s Judgment |
The assessee submitted that AY 2022-23 was covered by the UAPA entered into under section 92CC and that it had filed the modified return in accordance with the terms of the UAPA. | The Revenue fairly conceded that AY 2022-23 was covered by the UAPA and had no objection to remitting the matter to the AO for giving effect to the UAPA. | The ITAT observed that AY 2022-23 was a covered year under the UAPA and that the assessee had duly filed the modified return in accordance with the UAPA. |
The assessee contended that the TPO erred in sustaining the TP adjustment despite compliance with the UAPA and accordingly filed a rectification application u/s 154 seeking deletion of the adjustment. | The Revenue conceded that, since AY 2022-23 was covered under the UAPA, the matter could be remitted to the AO for giving effect to the UAPA. | The ITAT, relying on section 92CD(3), held that the AO was required to consider the modified return and complete the assessment in accordance with the UAPA. Accordingly, the AO/TPO was directed to pass the assessment order as per the UAPA. |
Ruling Summary -
Bangalore ITAT held that AO erred in not considering the modified return filed by the assessee while completing the assessment, as the assessment proceedings were pending when the modified return was filed pursuant to the UAPA.
Accordingly, the ITAT directed the AO/TPO to pass the assessment order for AY 2022-23 in accordance with the terms and conditions of the UAPA, considering that the assessee had duly complied with all the terms of the UAPA.
