TaxTMI 
TaxTMI 
2021 (9) TMI 1122
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....ding technical support and marketing related services to customers of Cadence (Ireland) Ltd. Under the scheme of amalgamation approved by Hon'ble High Court of Karnataka by order dated 21.04.2016, three companies, namely, Cadence AMS Design Pvt. Ltd., Denali Design System Pvt. Ltd. and Tensilica Technologies India Pvt. Ltd. were amalgamated into the assessee and all assets and liabilities of the said companies were transferred to the assessee. For the assessment year 2016-17, assessee filed return of income on 29.11.2016 declaring income of Rs. 1,10,09,38,770/- and in view of international transactions entered into by the assessee with their Associate Enterprises (AEs), ld. Assessing Officer referred the determination of Arm's Lengt....
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....ation. Ground No. 3 is in respect of disallowance of bad debt written off, ground No. 4 to 6 relate to incorrect assessed income, ground No. 7 relates to education cess and ground No. 8 is in respect of transfer pricing adjustment. We shall now deal with these issues under dispute. 4. Coming to bad debts written off, ld. Assessing Officer's contention is that such bad debts relate to the amalgamating company, i.e., Cadence AMS Design India Pvt. Ltd. and the provision for doubtful debts was to be allowed only in respect of the assessee and none else. 5. Ld. AR placed reliance on the decision of Hon'ble Supreme Court in the case of CIT vs. T. Veerabhadra Rao, 155 ITR 152 (SC) and of Hon'ble Gujrat High Court in CIT vs. Sambhav M....
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....ands of the amalgamated company. This ground is, accordingly, allowed for statistical purposes. 7. Now coming to ground No. 4 to 6, it is submitted by the ld. AR that in respect of grievance of assessee under grounds Nos. 4 to 6, a rectification application was filed vide email dated 23.04.2021 alongwith follow up/reminders dated 08.07.2021 and 13.07.2021, but the ld. Assessing Officer has not attended the matter so far. Ld. AR prayed that directions may be given to the ld. Assessing Officer to dispose of the rectification application on due verification of the claim of the assessee in respect of the assessment of total income, non-grant of MAT credit and short grant of advance tax and TDS. Ld. DR fairly concedes that the matter may be sen....
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....fore, it stands on a different footings and allowable as a deduction. He places reliance on the decision of Hon'ble Apex Court in the case of CIT vs. K. Srinivasan, AIR 1972-SC-491 in support of his contention that the cess levied under the IT Act forms part of the Income tax itself. He submitted that the decision of Hon'ble Supreme Court is not considered by the High Court in the case of Chambal Fertilizers and Chemicals Ltd. (supra) and Sesa Goa Ltd. (supra) and therefore, he addresses the Bench to follow the decision of Hon'ble Supreme Court. 10. Be that as it may, it remains an undisputed fact that the assessee does not raise this issue at any stage before the authorities below. We, therefore, find force in the arguments of....