TaxTMI 
TaxTMI 
2023 (9) TMI 1306
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....esolution Panel (DRP). 2. Though, the assessee has raised multiple grounds, both, on legal issues as well as on merits, however, the basic grievance of the assessee before us is, while passing the final assessment order, the Assessing Officer has not implemented the directions of learned DRP in letter and spirit as per the mandate of section 144C(13) of the Act. 3. As could be seen from the facts on record, the assessee is a non-resident corporate entity, incorporated in Switzerland and a tax resident of Switzerland. In the previous year relevant to the assessment year under dispute, the assessee had received an amount of Rs. 58,85,733/- from its Indian Associated Enterprise (AE) and a further amount of Rs. 16,21,275/- from Mumbai Airport....
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....ssing Officer for factual verification and necessary comments. 4. After considering the remand report, learned DRP issued certain directions to the Assessing Officer in the matter of addition proposed in the draft assessment order. However, without carrying out the directions of learned DRP, the Assessing Officer passed the final assessment order repeating the addition made in the draft assessment order. 5. Having considered rival submissions, we find, though, in course of assessment proceeding, the assessee, for whatever may be the reason, could not furnish certain documentary evidences, such as, TRC, underlying agreement with Indian parties, no PE Certificate etc., however, before learned DRP, the assessee did furnish the aforesaid evid....
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....g objections, but the directions of learned DRP are binding on the Assessing Officer. Further, Rule 9 of DRP Rules empowers the DRP to call upon or permit the assessee to produce any document or examine any witness or file any evidence to enable it to issue proper direction. Thus, when the statute confers power on the DRP to call upon and admit additional evidences, the Assessing Officer cannot challenge the authority of learned DRP in admitting the additional evidences. Pertinently, while rejecting the objections of the Assessing Officer on the issue of admission of additional evidences, learned DRP has given the following directions to the Assessing Officer on merits: "3.21 The Panel, accordingly, directs the AO to verify from his recor....
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....ils/query from the assessee during the remand proceeding, which the assessee did not furnish. In case, it is so, the addition to be retained. Learned DRP had further directed, in case, the Assessing Officer has not asked for any clarification or conducted any inquiry during the remand proceeding, the Assessing Officer must record, as to why and under what circumstances, he did not conduct any inquiry relating to the manner of delivery of services or proof of employees visiting India for rendering such services, that too, without providing any opportunity to the assessee. Learned DRP also directed the Assessing Officer to pass a speaking order. However, on a reading of the final assessment order, more particularly, the observations of the As....