2012 (9) TMI 85

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ling of the present application are that the assessee is engaged in Information Technology enabled services and business support services to the parent company. Assessment for the year under appeal, was completed invoking the provisions relating to the Transfer Pricing, under S.143(3) of the Act read with S.144C of the Act, determining the income of the assessee at Rs.14.49 crores, as against returned income of Rs.8.29 crores. The assessing officer raised the demand of Rs.3,30,51,041 which includes tax component of Rs.1,97,86,736 and interest segment of Rs.1,32,74,305. 3. During the proceedings before us, learned counsel for the assessee filed a copy of the notice under S.226(3) dated 6.6.2012 regarding the attachment of the bank of a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....gh pitch assessments made determining the income of the concerned assessees have been determined in multiples of the returned incomes, stay of recovery of outstanding demand has been justified, which may be tabulated hereunder- Case relied upon Citation Assessed income as a multiple of returned income Taneja Developers & Infrastructure Ltd. V/s. ACIT of the Delhi High Court 222 CTR 521 -Delhi High Court 350 times of the returned income. Soul V/s. Dy. Commissioner of Income-tax of Delhi High Court 173 Taxman 468(Del) 74 times of the retuned income. Valvoline Cummins Ltd. V/s. Dy. Commissioner of Income-tax of Del. High Court (2008) 171 Taxman 241(Del) Eight times N.Rajan Nair V/s. ITO of Kerala High Cou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....quiries carried out at the back of the assessee, without meeting the objections raised by the assessee before the TPO/Assessing officer, DRT, etc. Regarding the net margins, learned counsel submitted that the assessing officer determined the assessable net margins at very high figures, without granting due adjustments to the assessee. 7. Referring to the financial balance of convenience in matters of payment of tax, the learned counsel filed a status report indicating available cash at page 1 of the paper-book, according to which as on 31st May, 2012,there is only an amount of Rs.36,94,528, on account of total cash available of Rs.10,73,31,886 as against cash requirement for the month of June of Rs.10,36,37,358. He submitted that any rec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....his approach is certainly not appreciated. So also, in the manner of picking up the comparables for applying the TNMM method, rejecting the comparables provided by the assessee, we find there is lack of transparency and the assessing officer failed to honour the set principles of natural justice. The assessing officer should have provided opportunity as to why the comparables relied upon by the assessee are not acceptable. We also find that the objections raised by the assessee before the lower authorities were not met by passing a speaking order. On these issues, the arguments made out by the learned counsel for the assessee cannot be dismissed outright. Considering the above aberrations, the assessment made has to fall under the high-pitc....