Order passed by the Income Tax Department

The Income Tax Department, through its Deputy Commissioner in Bengaluru, passed an assessment order under Section 143(3) of the Income Tax Act, 1961, for Assessment Year 2023-24. The department re-categorized certain overseas entities as "resellers of IT products" (instead of "IT service providers" as the company contends), resulting in a transfer pricing adjustment of ₹17,91,09,474 (approximately ₹17.91 crore). The matter pertains to international inter-company transactions. The company has stated it will file an appeal against the order before the appellate authority and denies the re-characterization.