Assessee's appeal allowed for further verification and computation by Assessing Officer.

The appeal filed by the assessee was allowed for statistical purposes, with various issues remanded to the Assessing Officer (AO) for further verification and computation in accordance with the law. The order was pronounced on 31st May, 2023.

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Issues Involved:
1. Communication of the final assessment order.
2. Transfer Pricing adjustments on overdue receivables.
3. Disallowance under Section 80G for CSR contributions.
4. Disallowance under Section 40A(7) for gratuity payments.
5. Addition to book profits under Section 115JB.

Summary:

1. Communication of the Final Assessment Order:
The assessee contended that the final assessment order dated 27.01.2022 was not communicated as prescribed under the Income-tax Act, 1961, rendering the proceedings null and void.

2. Transfer Pricing Adjustments:
- The assessee challenged the adjustment of Rs. 7,87,77,217/- for overdue receivables, arguing that delayed receipts should not be treated as unsecured loans to Associated Enterprises (AEs) and should not attract interest imputation.
- The assessee argued that delayed receivables do not constitute a separate international transaction under Section 92B of the Act and should be benchmarked with the principal transaction of rendering services.
- The assessee maintained a policy of not charging interest on receivables from both AEs and non-AEs, and that notional income should not be taxed.
- The Tribunal referenced the Hon'ble Special Bench decision in Instrumentation Corporation Ltd. vs. ADIT and the Hon'ble Delhi High Court in CIT vs. Cotton Naturals (India) Pvt. Ltd., directing the AO/TPO to compute interest on outstanding receivables exceeding 30 days using LIBOR rate + 200 basis points. The issue was remanded to the AO for recalculating disallowances.

3. Disallowance under Section 80G for CSR Contributions:
- The AO disallowed Rs. 5,50,000/- claimed under Section 80G for CSR contributions.
- The Tribunal, referencing its decision in the assessee's own case for A.Y. 2016-17 and the case of First American (India) Pvt. Ltd. vs. ACIT, remanded the issue to the AO to verify the details and allow the deduction to the extent of eligibility.

4. Disallowance under Section 40A(7) for Gratuity Payments:
- The AO disallowed Rs. 1,84,63,918/- claimed for leave encashment and gratuity, citing non-verification with Form 3CDB.
- The Tribunal noted that contributions were made towards an unapproved gratuity fund and remanded the issue to the AO for verification. The AO was directed to allow deductions for gratuity paid during the year or contributions made in previous years.

5. Addition to Book Profits under Section 115JB:
- The Tribunal directed the AO/TPO to recompute the book profit in accordance with the law after giving effect to this order.

Conclusion:
The appeal filed by the assessee was allowed for statistical purposes, with various issues remanded to the AO for further verification and computation in accordance with the law. The order was pronounced in the open court on 31st May, 2023.

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