TaxTMI 
TaxTMI 
2023 (7) TMI 848
X X X X Extracts X X X X
X X X X Extracts X X X X
....nsfer pricing adjustment of Rs. 8,92,28,190/- in respect of international transactions entered by the Appellant alleging the same to be not at arm's length in terms of the provisions of Section 92C of the Act read with Rule 10D of the Income Tax Rules, 1962 ("Rules"). 3. That, on the facts and circumstances of the case and in law, Hon'ble DRP/ Ld. AO erred in making an addition of Rs. 9,43,45,109/- on account of disallowance of depreciation on goodwill amounting to Rs. 6,15,36,299, disallowance of bad debts written off amounting to Rs. 2,10,43,511 and disallowance under Section 43B amounting to Rs. 31, 140 during the relevant A Y. 4. That, on facts and circumstances of the case and in law, the Hon'ble DRP erred in sustaining the addition on account of is allowance of depreciation on goodwill only on the condition that order of this Hon'ble Tribunal in Appellant's own case for A Y 2015- 16 has been challenged before the High Court. 5. That, on facts and circumstances of the case and in law and without prejudice to ground number 4, the Ld. AO grossly erred in sustaining the adjustment/ additions sans an appeal filed against the order of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....prudent for the Appellant to have incurred the same. 11. That, on the facts and circumstances of the case and in law, the Hon'ble DRP/Ld. AO/ Ld. TPO erred in disregarding the fact that the disallowance of such costs would have a corresponding negative impact on the Appellant's taxable income and resultant profits which is against the intent of the provisions of Chapter X of the Act. GROUNDS AGAINST CORPORATE TAX ADDITIONS 12. That, on facts and circumstances of the case and in law, the Hon'ble DRP/ Ld. AO/ Ld. TPO grossly erred in not following the settled principles of judicial propriety by not appreciating that the issue of disallowance of depreciation on goodwill is squarely covered in favour of the Appellant by the order of this Hon'ble Tribunal in Appellant's own case for the preceding AYs 2015-16 and 2016-17. 13. That, on facts and circumstances of the case and in law and sans any change in facts and circumstances of the case vis-a-vis the preceding AYs, the Hon'ble DRP/ Ld. AO/ Ld. TPO grossly erred in not following the principle of consistency as laid by the Hon'ble Supreme Court of India in the case of Radhas....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd in law, the Hon'ble DRP/Ld. AO erred in not appreciating that the Appellant had satisfied the twin conditions for allowance of deduction for bad debts contained in Section 36(1)(vii) read with Section 36(2) of the Act, which are that the (a) bad debts have been written off as irrecoverable in the books of accounts and (b) bad debts written off were offered to tax as income by the Appellant for earlier A Y s. 21. That, on the facts and circumstances of the case and in law, the Hon'ble DRP/Ld. AO failed to appreciate that it was bound by the decision of the decision of the Hon'ble Supreme Court in the case of TRF Lid v. CIT [2010J 323 ITR 397 (SC) wherein it was held that an expense deduction in relation to the bad debts written off during the A Y has to be allowed. OTHER GROUNDS 22. That, on the facts and circumstances of the case and in law, the Ld. AO erred in levying interest under Section 234A and 234B of the Act. 23. That, on the facts and circumstances of the case and in law, the Ld. AO erred in initiating penalty proceedings under Section 271 (1)(c) of the Act. Each of the above grounds are independent and without pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sion of this Hon'ble Tribunal in Appellant's own case for preceding 2 years (A Y 2015-16 and 2016-17). The Hon'ble Tribunal deleted the entire adjustment made by the Ld. TPO on account of intra group services by giving detailed reasons and finding. Relevant extracts of the Tribunal's order dated January 31, 2020 for A Y 2015-16 are reproduced below: "17. In our considered opinion, the lower authorities erred in questioning the need and benefit arrived by the assessee from payment in respect of availing of services from its AE. All that is required to be seen is as to whether there was actual rendition of services or not. We have carefully gone through the emails and invoices placed in the paper book vis a vis TSA Agreement. In our considered opinion, these documentary evidences clearly show the rendition of services by the AE to the appellant company. Moreover, the TPO himself has accepted the fees received by the assessee from rendering these services. We fail to understand why the payments have been subjected to different treatments. 19. Considering the facts of the case in totality in light of the judicial decisions referred to hereinabove, w....