TaxTMI 
TaxTMI 
2021 (12) TMI 92
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....44C(5) of the Act. '1. On the f acts and in the circumstances of the case and in law, the order passed by the Ld. AO the directions issued by the DRP and the order passed by the TPO are bad in law and liable to be quashed as they are not in accordance with law. 2. On the f acts and circumstances of the case and in law, the AO pursuant to the directions of the DRP has erred in determining total income of the appellant of Rs. 8,80,19,200/-. 3. On the f acts and circumstances of the case and in law, the AO, DRP and TPO have erred in not considering the evidences and submissions f iled by the appellant. 4. On the f acts and circumstances of the case and in law, the AO pursuant to the directions of the DRP con....
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....of income on 06.09.2013 with a total loss of Rs. 15,40,66,833/- and the return of income was processed u/s 143(1) of the Act. Subsequently, the case was selected for scrutiny and the notice u/s 143(2) and 142(1) of the Act was issued along with questionnaire. In compliance the Ld. AR of the assessee appeared from time to time and filed the submissions. The Assessing officer (A.O) on perusal of the financial statements found that the assessee has international transactions with its Associate Enterprises(AE) and therefore the matter was referred to the Transfer Pricing Officer (TPO) for determination of Arm's Length Price (ALP). The TPO on receipt of the directions of the A.O. has called for the information in support of ALP computed as per F....
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.... in debtors collections and are outstanding. Since the assessee has not bench marked the same in TP report, the TPO has issued show cause notice. The assessee was called for the explanations for the delayed debtors and advances provided to Associate enterprises (AE) and why the same should not be treated as loan and accordingly interest should be charged. The assessee has filed a detailed reply on 25.01.2015 in respect of outstanding advances and debtor's receivable from Associate Enterprises as under: Particulars Peacock Diamond Systems Inc (Rs.) Peacock Diamond Systems B.V. (Rs.) Hilti Corporation (Rs.) Loans and Advances 2,95,56,854 - - Reimbursements from group companies 6,78,501 65,07,387 - Intres....
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.... on 28.03.2016 u/s 143(3) r.w.s 144C(1) of the Act with (i) rejection of additional claim of Bad Debts written off (ii) restricting the set off of brought forward business loss and unabsorbed depreciation to Rs. 7,47,59,260/- and (iii) the Transfer pricing adjustment of Rs. 87,11,627/- and assessed the total income of Rs. 8,80,19,200/-. The assessee aggrieved with the draft assessment order has filed the objections in Formno-35A with the Dispute Resolution Panel (DRP). The DRP has passed the directions u/s 144C(5) of the Act dated 04.11.2016. Subsequently, the A.O. after the receipt of the orders of the DRP has passed the final assessment order with ALP of interest in respect of international transactions with its AE's of Rs. 87,11,627/- an....
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....liquidation on 23.12.2011 and was dissolved w.e.f 05.10.2012. The contention of the Ld.AR that the AE was dissolved and recovery of advances itself is doubtful. Further charging of interest on the outstanding advances and debtors is not financially feasible and the same cannot be treated as international transaction and prayed for the deletion. Contra, the Ld.DR supported the orders of the TPO and DRP. 5. We heard the rival submissions and perused the material on record. On the first issue of the Associated Enterprise (AE) M/s Peacock Diamond System Inc. USA were advances are provided by the assessee, it is borne out on the record and not disputed that the AE company went into liquidation due to heavy losses and was dissolved as per the ....