TaxTMI 
TaxTMI 
2023 (9) TMI 1024
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....sing of DRP directions without Document Identification Number (DIN). b) Grounds on Transfer Pricing Adjustments c) Ground on Corporate tax adjustments d) Disallowance of legal and professional charges paid to the non-residents under section 40(a)(i) of the Act for non-deduction of taxes at source under section 195 of the Act. e) Disallowance of legal & professional charges paid to residents. f) Deduction under section 10AA of the Act g) Computation under section 115JB of the Act h) Others 2. Facts of the case are that the assessee company is engaged in the business of Trading and Installation of Information Technology related products and services, Software Development and Bu....
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.... the Act was passed on 15/09/2021 since Transfer pricing adjustment of Rs. 59,54,35.766/- was involved in this order. The assessee has filed objection before the Ld. DRP against the draft assessment order dated 21/10/2021. The Ld. DRP has issued direction vide order dated 29.06.2022 which is uploaded on ITBA vide DIN & Document No ITBA/DRP/S/91/2022- 23/1043677134(1) dated 30.06.2022. The Ld, DRP has given the directions on TP adjustment and corporate issues. The Ld. TPO has passed order giving effect vide DIN No.ITBA/COM/F/17/2022- 231/1043904862(1) dated 18/07/2022 stating that total adjustment on TP issue is Rs. 51,02,83,239/- after giving effect to the directions of the ld. DRP. Summary of Adjustment after post DRP direction: Sl.N....
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.... issued by the Central Board of Direct Taxes (CBDT) it has been strictly mentioned that any communication issued by any Income Tax Authority (ITA) without DIN shall be treated as invalid and shall be deemed to never have been issued. 5.2 Further, in the circular 19/2019 the CBDT has also prescribed some exceptional circumstances wherein the AO can issue any manual communication without DIN but there will be proper recording of reasons in the specified format and prior approval of designated authorities has to be taken before issuance of such communication. Thereafter, such manual communication has to be regularized within 15 days of its issuance. 5.3 Similar issue came for consideration in ITA No.1542/Del/2020 dated 16.9.2022 for the ....
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....n this case is a mistake or at best, a defect and/or an omission (which can be covered or cured u/s 292B of the Act), which ought not to invalidate the assessment proceedings. 5.6 In response to the contention of the revenue, the Assessee submitted that circular 19/2019 is binding on the revenue and error (i.e., not quoting DIN in order) is jurisdictional in nature and therefore, cannot be corrected by taking recourse to Section 292B of the Act. In support of their contentions the Assessee relied on various case laws of Hon'ble Supreme Court which have similar facts/issues. Issue before the Hon'ble High Court: 5.7 Whether the order of the ITAT to not sustain the final assessment order dated 15.10.2019 in compliance with the....
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....39;ble Court has dismissed the appeal of the revenue by mentioning that "we find no error in the view adopted by the Tribunal. The Tribunal has simply applied the provisions of the 2019 Circular and thus, reached a conclusion in favour of the Assessee". 5.12 In this regard, we rely on the following orders of the coordinate benches of this Tribunal, wherein similar view has been taken by the Tribunal: a) Circular No.19/2019 dated 14.8.2019 issued by the CBDT b) Dilip Kothari vs. Principal CIT in ITA No.405/Bang/2022 (Bangalore ITAT) dated 31.10.2022. c) H.K. Suresh vs. Principal CIT in ITA No.625/Bang/2021 (Bangalore ITAT) dated 06.12.2022 d) Tata Medical Centre Trust vs. CIT in ITA No.238/Kol/2021 (Kol....