TaxTMI 
TaxTMI 
2024 (1) TMI 493
X X X X Extracts X X X X
X X X X Extracts X X X X
....year 2018 - 19 on 1/8/2022 wherein the return filed by the assessee declaring a loss of Rs. 102,714,898/- on 29/11/2018 is assessed at Rs 189,01,260/- by making a transfer pricing adjustment under section 92CA of Rs. 121,616,158/-. 02. Assessee has raised following grounds of appeal:- "1. On the facts and in the circumstance of the case and in the law, the impugned order dated 01.08.2022 passed by Assessment Unit, Income tax department (learned AO) under section 143(3) read with section 144C(3) and section 144B of the Act, is barred by limitation, since impugned order is passed/issued beyond the maximum time limit prescribed under section 144C(13) of the Act. Hence the assessment order is liable to be quashed/annulled as time ba....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th price of the 'international transactions of provision of MSS. 5. Without prejudice to ground 1 above, on facts and in the circumstance of case and in law, the learned DRP erred in confirming the action of TPO by selecting the following companies as comparable to the Appellant in determining the arm's length price of the international transactions - i. Focus Suits Solutions & Services Ltd. ii. Majestic Research Services & Solutions Pvt. Ltd. 6. Without prejudice to ground 1 above, on facts and circumstance of case and in law, the learned DRP erred in determining the arm's length price of the international transaction by upholding the rejection of all comparable companies selected by the Appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arned DRP further erred in upholding/confirming the action of the learned TPРО. 8. Without prejudice to the ground labove, on the facts and in the circumstances of the case and in law, the Learned DRP erred in confirming the action of TPO who has considered the operating revenue of the Appellant at Rs. 43,30,84,468 instead of Rs. 44,85,32,931 as credited to profit and loss account and offered to tax during the year under consideration and which includes accrued revenue of Rs. 1,54,48,463 not yet invoiced to Associated Enterprise while in determining Arm's length price of international transaction of provision of MSS. 9. Without prejudice to the ground labove, on the facts and in the circumstances of the cas....
X X X X Extracts X X X X
X X X X Extracts X X X X
....PC compound grades and selling it mainly to third-party customers. Regarding its marketing activities it caters to the requirement of the group company with regard to provisioning of marketing support services performing certain sales promotion, advertisement, presentation to various business groups, conducting or participating in seminars, exhibitions tradeshow and marketing research activities for product manufactured by its group companies. During the year assessee provided market support services to its associated enterprises amounting to Rs. 433,084,468 taking the figure of revenue at Rs. 448,532,931 as per audited financial statements. No justification was given about the above difference. The assessee's profit level indicator by adop....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ispute Resolution Panel who passed the direction under section 144C (5) of the act on 14/6/2022 wherein in substance all the objections of the assessee was dismissed except computation of the margin of the comparable companies. Based on the direction of the learned dispute resolution panel the assessing officer computed the margin of the comparable companies, which came to 37.02 and therefore the transfer pricing adjustment, was revised from Rs. 96,152,233/- to Rs. 121,616,158. Consequently the assessment order was passed under section 143 (3) read with section 144C (3) read with section 1444B of the income tax act on 1/8/2022 determining total income of the assessee at Rs 189,01,260/- against the returned loss of Rs. 102,714,898/-. 06. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rary contained in section 153 the assessment without providing any further opportunity by of being heard to the assessee within one month from the end of the month in which such directions are received. 09. According to rule 11 of The Income Tax (Dispute Resolution Panel) Rules, 2009 the panel shall after the directions issued, communicate the same to the eligible assessee and to the assessing officer. The order is communicated to the assessee on 14 June 2022 at 4.10 p.m. digitally signed by one of the members of the learned dispute resolution panel. According to rule 11 of Dispute Resolution Scheme 2022 dated 5/4/2022 the delivery of such direction would be by placing an authenticated copy of such order in the registered account of the ....