TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 729
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....judice to the generality of the foregoing, we raise following grounds: Transfer Pricing 2. That the learned AO/DRP erred both in facts and law in confirming the action of the learned TPO of making an adjustment to the transfer price of the Appellant in respect of the payment of management service fee of INR 3,01,42,197/- to Associated Enterprises ('AEs'), holding that this international transaction does not satisfy the arm's length principle envisaged under the Act and in specific in doing so grossly erred in: 2.1 Disregarding the evidence placed on record by labelling them as 'regular common communication between AEs' and thereby adopting the prejudicial approach in concluding that the Appellant failed to furnish the proof of expenses incurred by AEs along with the proof of benefits derived. 2.2 Ignoring the principle that it is not the domain of learned TPO to question the rendition of service and benefit arising there from; 2.3 Concluding the arm's length price of this international transaction to be NIL without following any of the prescribed methods and disregarding the Transactional Net Margin Method ("TNMM') analysis undertaken by t....
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....Based on this order of TPO, the assessing officer issued a draft order u/s. 144C of the Act. Against this draft order, assessee preferred a petition before the Ld. DRP, which in turn confirmed the draft order of AO passed in consequence to the adjustments purposed by the TPO u/s. 92CA(3) of the Act. Ultimately a final assessment order u/s. 143(3) r.w.s. 144C(13) and 144B of the Act was passed making an adjustment /addition of Rs. 3,01,42,197/-. The assessee being aggrieved with the order of AO and directions of the Ld. DRP passed u/s. 144C (5) preferred the present appeal before us. 4. We have gone through the draft assessment order alongwith the report of TPO, directions of the Ld. DRP, final assessment order and submissions of the assessee alongwith grounds raised in Form No. 36 and additional ground raised vide application dated 06.09.2023. The application filed for additional ground is rejected as the same is not pressed by the assessee. Our adjudication is limited to the extent of the grounds incorporated in Form No. 36. Assessee raised 2 grounds of appeal. Ground no. 1 is general in nature and Ground no. 2 is specific to the facts of the matter, hence the same is being adjud....
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....ce under sub-section (2), or as soon thereafter as may be, after hearing such evidence as the assessee may produce, including any information or documents referred to in sub-section (3) of section 92D and after considering such evidence as the Transfer Pricing Officer may require on any specified points and after taking into account all relevant materials which he has gathered, the Transfer Pricing Officer shall, by order in writing, determine the arm's length price in relation to the international transaction [or specified domestic transaction] in accordance with sub- section (3) of section 92C and send a copy of his order to the Assessing Officer and to the assessee. [(3A) Where a reference was made under sub-section (1) before the 1st day of June, 2007 but the order under sub-section (3) has not been made by the Transfer Pricing Officer before the said date, or a reference under sub-section (1) is made on or after the 1st day of June, 2007, an order under sub-section (3) may be made at any time before sixty days prior to the date on which the period of limitation referred to in section 153, or as the case may be, in section 153B for making the order of assessment or reass....
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.... in the notification: Provided, that no direction shall be issued after the 31st day of March, [2025]. (10) Every notification issued under sub-section (8) and sub-section (9) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.] Explanation.-For the purposes of this section, "Transfer Pricing Officer" means a Joint Commissioner or Deputy Commissioner or Assistant Commissioner authorised by the Board to perform all or any of the functions of an Assessing Officer specified in sections 92C and 92D in respect of any person or class of persons.] 6. The above provisions of section 92CA of the Act need to be analysed with reference to the facts of the case and relevant grounds raised by the assessee as under:- "2.1 Disregarding the evidence placed on record by labelling them as 'regular common communication between AEs' and thereby adopting the prejudicial approach in concluding that the Appellant failed to furnish the proof of expenses incurred by AEs along with the proof of benefits derived. 2.2 Ignoring the principle that it is not the domain of learned TPO to question the rendition of service and benefit arising t....