2020 (3) TMI 1162

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ted 30-07-2018 relating to assessment year 2014-15. 2. The substantive grounds of appeal raised by the assessee reproduced hereunder: The grounds stated hereunder are independent of, and without prejudice to, one another. The Appellant submits as under: 1 sAssessment and reference to Ld. Transfer Pricing Officer are bad in law a) The final order issued by the Deputy Commissioner of Income-Tax, Circle 4(1)(1) ['DCIT' or 'Ld. AO'], is bad on facts and in law. The learned Ld. AO / learned Deputy Commissioner of Income-Tax (Transfer Pricing) - Circle 1(3)(2)[id. TPO'], erred in law and on facts in making an addition to the total income of the Appellant on account of adjustment to the ar....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....data for financial year ('FY') 2013-14 was not available (ii) companies having related party transactions greater than 25% of the sales (iii) companies with different financial year ending (i.e., other than 31 March 2014) and (iv) companies having persistent losses. The Ld. Panel erred in upholding the actions of the Ld. AO/ Ld. TPO. c) The Ld. AO / Ld. TPO erred in law in applying an arbitrary filter to reject companies having related party transactions greater than 25% of sales. Further, the Hon'ble DRP also erred in upholding the related party transaction filter of 25%, disregarding the Appellant's ground for application of the related party transaction filter at a threshold of 10% or 15% of sales. The Ld. Panel ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on facts in not accepting determination of arm's length price by the Ld. TPO in relation to the trade receivables. The Ld. Panel erred in upholding the actions of the Ld. AO/ Ld. TPO. Erroneous data used by the Ld. AO / Ld. TPO a) The AO / TPO has erred in law in using data, which was not contemporaneous and which was not available in the public domain at the time of conducting transfer pricing study by the Appellant. The Ld. Panel erred in upholding the actions of the Ld. AO/ Ld. TPO. b) The AO / TPO erred in law and on facts in disregarding the application of multiple-year data while computing the margins of the comparable companies. The Ld. Panel erred in upholding the actions of the Ld. AO/ Ld. TPO. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on 271(1)(c) of the Act. 10. Relief a) The Appellant prays that directions be given to grant all such relief arising from the above grounds and also all relief consequential thereto. b) The Appellant craves leave to add to or alter, by deletion, substitution or otherwise, the above grounds of appeal, at any time before or during the hearing of the appeal c) The Appellant further prays that the adjustment in relation to Transfer Pricing matters made by the Ld. AO/Ld. TPO and upheld by the Hon'ble DRP be deleted. 3. When the matter was called for hearing, the learned AR for the assessee adverted our attention to the application dated 08-01-2020 from the assessee whereby grounds of appeal relating to ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....revious year relating to assessment year 2014-15, the expenses disallowed in assessment year 2012-13 under the main provisions of sec.40(a)(i) of the Act is required to be allowed in the assessment year 2014-15 on actual payment basis. 6. It was further pointed out that the proceedings before the appropriate authority would be withdrawn for claim of tax in assessment year 2012-13 where the disallowance of payments made to M/s Hexaware carried out in assessment year 2012-13 is reversed in assessment year 2014-15 on payment basis. It was further pointed out that the DRP has erred in denying the benefit under proviso to sec.40(a)(i) as not appealable before it. It is thus contended on behalf of the assessee that the benefit of proviso to se....