Tribunal remands case for fair review, citing breach of natural justice. Department to reconsider appellant's evidence.

The Tribunal remanded all issues back to the Dispute Resolution Panel for fresh adjudication, emphasizing the violation of natural justice due to the non-consideration of the appellant's submissions and evidences. The Departmental authorities were directed to examine the appellant's justifications. The appeal was allowed for statistical purposes, granting the appellant a proper opportunity to be heard. The Tribunal did not express any opinion on the merits of the issues raised.

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Issues:
Challenge to assessment order under section 143(3) r/s 144C(13) for the assessment year 2011–12 based on transfer pricing adjustment.

Analysis:
The appellant, an Indian Company providing financial consultancy services, contested the assessment order dated 4th January 2016, challenging the transfer pricing adjustment made by the Assessing Officer based on international transactions with Associated Enterprises (AE). The Transfer Pricing Officer adjusted the arm's length price by Rs. 9,08,60,000, which was added to the draft assessment order. The appellant raised objections before the Dispute Resolution Panel (DRP), which were rejected, leading to the confirmation of the adjustment in the final assessment order.

The appellant argued that no revenue transactions occurred with overseas AE during the relevant financial year, questioning the basis of the transfer pricing adjustment. Detailed submissions and additional evidences were presented to the DRP, but were allegedly not considered. The appellant also highlighted pending applications under section 154 of the Act pointing out these lapses. The Departmental Representative did not object to the issues being sent back to the DRP for fresh adjudication.

The Tribunal observed that the non-consideration of the appellant's submissions and evidences by the DRP amounted to a violation of natural justice. It emphasized that the Departmental authorities are obligated to examine the submissions and evidences provided by the appellant to justify their position. Therefore, the Tribunal decided to remand all issues raised in the appeal back to the DRP for a fresh adjudication after providing the appellant with a proper opportunity to be heard. The grounds were allowed for statistical purposes, and the appeal was allowed accordingly.

The Tribunal clarified that it did not express any opinion on the merits of the issues raised by the appellant in the appeal. The order was pronounced in the open Court on 30.01.2019.

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