TaxTMI 
TaxTMI 
2020 (9) TMI 279
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.... of Rs. 6,01,99,278 in relation to the international transaction of provision of software development services. In doing so, the Hon'ble DRP erred in : 1.1.1. upholding the action of the Ld. AO/ Ld, TPO in rejecting the TP documentation maintained by the Appellant; 1.1.2. upholding the action of the Ld. AO/ Ld. TPO in including companies in the comparability analysis which are different from the Appellant in functions, asset base and risk profile; 1.1.3. upholding the action of the Ld. AO/ Ld. TPO in not including companies in the comparability analysis which are similar to the Appellant in functions, asset base and risk profile ; 1.1.4. not directing the Ld. AO/ Ld. TPO to grant working capital adjustment; and 1.1.5. upholding the action of the Ld. AO/ Ld. TPO in incorrectly computing profit level indicator of certain comparable. The Appellant therefore prays that the Ld. AO / Ld. TPO be directed to treat the actual value of international transaction of provision of software development services as at arm's length and delete the TP adjustment of Rs. 6,01,99,278. 2. Ground No. 2 - Denial of claim of depreciation on goodwill On the facts and in the ci....
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....f preliminary expenses under section 350 of the Act amounting to Rs. 1,96,333 on the alleged ground that the impugned expenditure do not fall within the ambit of Section 350 of the Act, The Appellant therefore prays that the Ld. AO be directed to allow the deduction of preliminary expenditure u/s. 350 of the Act. 7. Ground No. 7 - Delay in payment of employee's ESIC contribution On the facts and in the circumstances of the case and in law, the Hon'ble DRP erred in confirming the action of the Ld. AO in denying claim of deduction on account of delay in payment of employee's ESIC contribution under section 36(i)(va) of the Act amounting to Rs.i2,88,O54 on the alleged ground that the employee's ESIC contribution has been paid after the due date prescribed u/s. s6(i)(va) of the Act. The Appellant therefore prays that the Ld. AO be directed to allow the deduction of employee's ESIC contribution. 8. Ground No. 8 - Credit of Self-Assessment Tax On the facts and in the circumstances of the case and in law, the Ld. AO has erred in denying the credit of self-assessment tax amounting to Rs. 2,62,19,000. The Appellant therefore prays that the Ld. AO be direct....
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....ated 21.12.2012 enclosed in pages 1335 to 1350 of the Paper Book filed before us. d) The assessee's case was picked up for scrutiny and notice u/s 143(2) of the Act was issued on 29.8.2013 by the ITO-7(2)(4) in the name of Atos IT Solutions and Services Private Ltd. e) During the course of hearing, the assessee vide letter dated 31.1.2014 enclosed in page 1332 of the paper book, submitted the order of the Hon'ble Bombay High Court approving merger of Atos IT Solutions and Services Private Ltd into Atos India Private Ltd. f) Accordingly, the jurisdiction was transferred from DCIT-7(2) to the jurisdiction of its successor company i.e. DCIT - 8(1), vide transfer memo dated 31.1.2014 enclosed in page 1334 of the paper book. g) The assessee vide letter dated 3.2.2014 filed its consent with respect to such transfer of jurisdiction. Further, the assessee also filed the order of the Hon'ble Bombay High Court approving merger of Atos IT Solutions and Services Private Ltd into Atos India Private Ltd with the learned DCIT-8(1) as well. The evidences in this regard are enclosed in pages 1333 to 1350 of the paper book. h) Thereafter, due to internal restructuring in department, j....
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....the assessee but the enclosures are not available thereon. We find that the entire objections of the learned AO vide letter dated 15/10/2019 had already been addressed by us hereinabove. The very fact that the revenue was indeed aware of the fact of merger of Atos IT Solutions and Services Pvt. Ltd with Atos India Pvt. Ltd. is evident from the excruciating fact that on 31/01/2014 the jurisdiction of the assessee was transferred from DCIT 7(2) to DCIT 8(1) which is jurisdiction of Atos India Pvt. Ltd. being the successor company to the assessee. The evidence in this regard is enclosed in page 1334 of the paper book by way of transfer memo signed by DCIT 7(2), Mumbai. Hence, it cannot be said that the learned AO was not intimated about the fact of merger with Atos India Pvt. Ltd., We also find that pursuant to this forwarding memo / transfer memo dated 31/01/2014 for transfer of jurisdiction from DCIT 7(2) Mumbai to DCIT 8(1) Mumbai, the assessee vide letter dated 03/02/2014 had filed its consent for transfer of jurisdiction. Even before the new Assessing Officer i.e. DCIT 8(1) Mumbai, assessee had once again filed a copy of the order of the Bombay High Court approving the amalgamati....
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....hat where during pendency of assessment proceedings, assessee company was amalgamated with another company and thereby lost its existence, the assessment order passed subsequently in the name of said nonexistent entity, would be without jurisdiction and was to be set aside. Respectfully following the same, we hold that the assessment order framed by the learned AO in the instant case deserves to be quashed as the same is without jurisdiction, being framed on a non-existent entity. Accordingly, the additional ground raised by the assessee is allowed. Since, the entire assessment is quashed on a legal issue, the adjudication of various other grounds of merits becomes infructuous." 8. Referring to the above order of the Income Tax Appellate Tribunal in assessee's own case, the learned counsel of the assessee submitted that assessee is confident of getting the necessary relief from the ITAT on the additional ground and accordingly he submitted that he is not prepared to argue upon the merits of the appeal. 9. Per contra learned Departmental Representative submitted that the assessee filed its return of income on 29.11.2012. Assessment order has been framed showing the following name....