https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=770467 https://www.taxtmi.com/caselaws?id=770467 Addition in respect of intra group services rendered by the associated enterprises to the assessee - HELD THAT:- Respectfully following the above decision of Co-ordinate Bench in assessee own case [2023 (8) TMI 1638 - ITAT KOLKATA] we direct the AO/TPO to delete the addition and accept the charges paid by the assessee to AE for IGS are held to be at arm's length. Our direction is inconsonance with the decision of Radhasoami Satsang [1991 (11) TMI 2 - SUPREME COURT] wherein held that even though the principle of res-judicata does not apply to income tax proceedings, but where fundamental aspect permeating through the different assessment years has been found as the fact one way or the other and the parties have allowed the position to be sustained by not challenging the order, it would not be at all appropriate to allow the position to be changed in subsequent year. Therefore, following the said decision, we hold that the department cannot be allowed to take a different view in the subsequent years. Similar view has been laid down in the case of Britannia Industries Ltd. [2001 (9) TMI 20 - CALCUTTA HIGH COURT], Excel Industries Ltd. [2013 (10) TMI 324 - SUPREME COURT]. Accordingly, ground no. 6 to 11 are allowed. TP adjustment made in relation to sales margin - HELD THAT:- We find that the DRP has directed the TPO to verify the data submitted by the assessee during the assessment proceedings and determine the ALP of the transactions. However, the TPO disregarded the direction given by the DRP and upheld the adjustment with respect to international transactions of payment of sales margin on the ground that CUP analysis has been submitted on sample basis whereas the same has been accepted in AY 2017-18. We observe from the statement filed before us during the course of hearing from AY 2014-15 to 2021-22 that the TPO has accepted the assessee's CUP analysis on sample basis in other assessment years. Therefore, as a matter of consistency also the TPO cannot be allowed to take a different view in AY 2016-17 as has been held in the case of Radhasoami Satsang [1991 (11) TMI 2 - SUPREME COURT]. Accordingly, we direct the AO to delete the adjustment. Incorrect income being considered for computation of total income for the final assessment order - assessee filed rectification petition before the AO, however, the AO has not passed any order till date - HELD THAT:- We find that the issue is required to be examined at the level of AO. Accordingly, we restore this issue to the file of AO with the direction to rectify the same after examining the facts on record and after affording a reasonable opportunity of hearing to the assessee. Ground allowed for statistical purposes. Disallowance of foreign exchange loss - assessee debited forex fluctuation loss to the profit and loss account which represented the realized forex loss on settlement of External Commercial Borrowings (ECB) and corresponding principal only swap and forward exchange contract by way of conversion into equity shares - HELD THAT:- We find that the issue requires re-examination at the end of AO . Therefore, we restore the issue to the file of AO to decide the same considering the facts on record and in accordance with law after verification of the same. Disallowance of actual payment of leave encashment - HELD THAT:- AO did not follow the direction of DRP and has not verified the details nor provided any opportunity to the assessee to substantiate its claim before passing the final assessment order and upheld the adjustment. After hearing the rival contentions and perusing the material on record, we find that issue needs to be examined at the level of AO. Appeal of the assessee are partly allowed for statistical purposes. Case-Laws Income Tax Wed, 22 Jan 2025 00:00:00 +0530