TaxTMI 
TaxTMI 
2020 (9) TMI 345
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....e case and in law, the learned Assessing Officer ('AO') has erred, in passing the assessment order under section 143(3) read with section 144C of the Income-tax Act, 1961 ('the Act') after considering the adjustments proposed by the learned Transfer Pricing Officer ('TPO') in his order passed under section 92CA(3) of the Act and subsequently confirmed by the Hon'ble Dispute Resolution Panel ('DRP'). Each of the ground is referred to separately, which may kindly be considered independent of each other and without prejudice to each other. That on the facts and circumstances of the case and in law, 1. The TPO/AO/DRP have erred, in law and on facts and circumstances of the case in making an adjustment of INR 1,00,69,3....
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.... Act read with the Income-tax Rules, 1962 ("the Rules") and modifying the same for determination of ALP of the alleged inter-company transaction, to hold that the same is not at arm's length 7. The TPO/AO/DRP have erred in proposing the adjustment to the income of the appellant for AY 2013-14, by arbitrarily 7.1 rejecting the economic analysis undertaken by the appellant as part of its Transfer Pricing documentation; 7.2 not appreciating the fact that appellant's economic analysis and determination of ALP of its international transactions is consistent with its FAR profile; and 7.3 Not appreciating the fact that the applicant, even after allegedly being characterized as a risk bearing entity, is earning a....
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....ed its return of income on 29th November 2013 declaring total income of Rs. 42,98,91,290/-. Since the assessee had entered into certain international transactions, the AO referred the matter to the TPO for determination of ALP of the international transactions. The TPO during the TP assessment proceedings noted that the assessee has entered into the following international transactions:- Sr. No. Name of Transaction Amount 1 Purchase of Fixed Assets 649,169 2 Provision of network connectivity services 2,369,310,891 3 Availing of network connectivity services 2,957,877,426 4 Cost reimbursement paid/payable 6,646,305 5 Interest Received/ receivable on overdue receivables 48,114,854 4. Th....
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....is year onward and assessed the difference in total value (explicit +terminal) at Rs. 723.16 Cr. In assessment year 2010-11, this matter is sub-judice. During the year under consideration the undiscounted value of profit pre-restructuring has been worked at Rs. 153.94 Cr in the working of TPO given in the order for assessment year 2010-11. This undiscounted value of pre-restructuring profit has been considered as the ALP by the TPO for this year. The assessee has shown the income of Rs. 53.24 Cr. in A Y 2013-14. The difference of these two figures amounting to Rs. 100.69 Cr. has been proposed as adjustment u/s 92CA for the relevant year under consideration on protective basis. Since, the addition on substantive basis by considering the disc....
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....years 2011-12 and 2012-13 on protective basis. For the above proposition he relied on the MAP resolution dated 29th January, 2018. He submitted that in assessment year 2014-15 the DRP in assessee's own case vide order dated 27th August 2018 held that since the transactions under consideration has already been brought to tax on substantive basis in MAP resolution dated 29th January, 2018 there is no basis for protective adjustment. Accordingly, the addition was deleted. He accordingly submitted that for the present assessment year also, the protective addition made by the AO / TPO which has been upheld by the DRP should be deleted. 10.1 Ld. DR on the other hand submitted that the MAP resolution came after the orders passed by the AO/TP....