Tribunal Dismisses Appeal for AY 2014-15 Due to Lack of Interest; Transfer Pricing Adjustments Unchallenged.

The Tribunal dismissed the appeal against the assessment order for AY 2014-15 due to the assessee's lack of interest in pursuing the case. The appeal involved Transfer Pricing adjustments in the engineering services segment. The Tribunal upheld the assessment order, as the assessee failed to present any substantive material to challenge the findings of the AO or TPO. Partial relief granted by the DRP did not alter the outcome, leading to the dismissal of the appeal.

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Issues involved: Appeal against assessment order u/s 143(3) r.w.s 144C(6) for AY 2014-15, Transfer Pricing adjustments in trading and engineering service segments.

Issue 1: Adjourning of appeal
The appeal was repeatedly adjourned due to various reasons such as requests from the counsel for the assessee, non-functioning of the bench, and the Covid-19 pandemic. Despite repeated notices and attempts to contact the assessee, no appearance was made to represent the assessee. The conduct of the assessee indicated a lack of interest in pursuing the appeal, leading to the hearing proceeding with the assistance of the ld. DR and based on the documents already on record.

Issue 2: Transfer Pricing adjustments
The assessee, a subsidiary of Abengoa S.A, engaged in providing engineering & construction services, raised grounds against the assessment order and DRP directions regarding foreign exchange fluctuation gains and Transfer Pricing adjustments in the engineering services segment. The TPO had rejected the Transactional Net Margin Method (TNMM) in the trading segment and made adjustments in the engineering services segment, reallocating indirect expenses from the trading segment. The DRP granted partial relief, and as no material was presented to challenge the findings of the Assessing Officer or the Transfer Pricing Officer, the Tribunal upheld the assessment order and dismissed the appeal of the assessee.

In conclusion, the appeal against the assessment order for AY 2014-15 was dismissed by the Tribunal due to the lack of interest shown by the assessee in pursuing the appeal and the upheld Transfer Pricing adjustments in the engineering services segment.

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