2023 (9) TMI 1575 - HC - Income Tax

High Court Upholds Decision Favoring Taxpayer, Cites Precedent, No Costs Awarded.

THE PR. COMMISSIONER OF INCOME-TAX CENTRAL, BENGALURU, THE DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE - 7 (1) (2) Versus M/s VM WARE SOFTWARE INDIA PVT. LTD.

The High Court of Karnataka dismissed the appeal, ruling in favor of the assessee. The decision was based on a precedent covering the issue, and no costs ... Assessment u/s 144C - TP adjustments were not received in time and the AO has confirmed the draft assessment order and the same is in violation of Section 144C - HELD THAT:- The solitary issue raised in this appeal is covered by the decision of this Court in M/S FLEXTRONICS TECHNOLOGIES (INDIA) PVT. LTD [2023 (2) TMI 712 - KARNATAKA HIGH COURT] as held assessee is right in his submission that under Section 144C of the IT Act, the Assessing Officer is bound by the directions issued by the DRP and required to pass the assessment order in conformity with the directions issued within one month from the end of month in which such directions are issued. ITAT has recorded that impugned order is not in conformity with the provisions of Section 144C of the IT Act and barred by time. Revenue appeal dismissed. The same is not disputed by Shri M. Dilip, learned Standing Counsel for the Revenue. The High Court of Karnataka, with Justices P. S. Dinesh Kumar and T. G. Shivashankare Gowda, dismissed the appeal in a case where the issue was covered by a previous decision. The question of law was answered in favor of the assessee, with no costs. The appellant was represented by Sri. Dilip M, Standing Counsel, and the respondent by Sri. T. Suryanarayana and Smt. Tanmayee Rajkumar.