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of <h1>Tribunal orders appeals allowed for lack of independent findings, case to be re-adjudicated</h1> <h3>American Express Services India Ltd. Versus ACIT, Circle-1 (1), New Delhi</h3> The Tribunal allowed both appeals against the orders of the Dispute Resolution Panel (DRP) due to lack of independent findings and the need for cogent ... - Issues involved: Appeals against orders passed by the Dispute Resolution Panel (DRP) regarding assessment of income, additions made, and levy of interest u/s 234B and 234D.ITA No.4362/Del/2010:The assessee filed a return declaring nil income, but was assessed at an income of ` 14,20,22,828/- with additions for depreciation on acquired business data base and adjustment on arm's length price. The Assessing Officer's order u/s 143(3)/144C(1) was confirmed by the DRP. The assessee objected to the additions, assessment at ` 14,20,22,828/-, levy of interest u/s 234B and 234D, and denial of set off of business losses and unabsorbed depreciation. The AR argued for restoration to DRP for a speaking order, citing the necessity of cogent reasons as per legal precedent.ITA No.3990/Del/2010:The assessee filed a return of ` 52,46,51,340/-, assessed at ` 142,97,43,842/- with additions for arm's length price adjustment and disallowed deduction u/s 10A. The AR contested the additions, DRP's order, and the levy of interest u/s 234A, 234B, and 234D. The AR sought restoration to DRP for a speaking order, emphasizing the importance of providing cogent reasons as per legal requirements.Judgment:The Tribunal noted that the DRP's orders lacked independent findings and merely relied on the TPO's conclusions. Citing a High Court decision, the Tribunal emphasized the need for DRP to provide cogent and germane reasons in its orders. As the DRP failed to do so, the appeals were restored to the DRP for re-adjudication, with directions to provide a speaking order with reasons for accepting or rejecting the assessee's claims. The Tribunal did not express any opinion on the merits, leaving the re-adjudication to the DRP in accordance with the law.Result:Both appeals were considered allowed for statistical purposes, with the matter to be re-adjudicated by the DRP as per the directions given in the Tribunal's order and the provisions of law.
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