2024 (5) TMI 1574

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....ed 18.05.2023, the assesse has raised grounds of appeal 1 to 3. All the ground of appeal are adjudicated hereunder. 2. Explaining the brief factual matrix of the case, the assesse has submitted that M/s. KBACE Technologies Private Ltd. India, was incorporated on 28.04.2004. It is a wholly owned subsidiary of KBACE US. The KBACE US provides services such as strategic services, implementation and development, operational insight, manage support and education. KBACE US is engaged in the business of providing Oracle consulting and ERP reporting. KBACE India is merged with M/s. Cognizant Technologies Solutions India Pvt. Ltd since 01.04.2018. 3. Post receipt of an order passed by the Hon'ble ITAT in IT (TP) A No.233/Bang/2018 dated 20.....

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.... limitation and therefore non est. In support of its contentions, the Appellant has invited attention to a plethora of judicial pronouncement including the decision of Hon'ble ITAT Delhi in the case of M/s. Adobe Systems India Pvt. Ltd vide ITA No.928/Del/2022 and SA No. 121/Del/2022 in ITA No.928/Del/2022. Relevant part of the said order are reproduced hereunder :- ".... 6. The submission of the ssesse's counsel is that the assessment order passed u/s 143(3) r.w.s. 144C(13) read with section 144B of the Act is barred by limitation since the same was passed beyond the maximum time limit u/s 144C(13) of the Act, hence it is liable to be quashed as time barred. Ld. Counsel of the assesse through the paper book submitted befor....

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....d to in sub-section(5) may make such further enquiry or calls any further enquiry and get the result reported to it. Hence there is no provision in the Act that DRP's direction as contained in section 144C(5) may be subject to any further verification by any Income-tax authority other than giving effect by the AO. Hence the plea that since the TPO gave effect to the DRP's direction subsequent to the DRP's direction cannot in any manner be considered to expand the time limit as prescribed in the Act. Even from this date of TPO's giving effect, the final assessment order is time barred in any case. As already noted by us, Id. DR's plea that TPO's giving effect to the DRP's direction on 18.02.2022 can be considered ....

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.... 7. The assesse submitted that even on merits of the case the Ld. AO was precluded from making any additional on account of inappropriate application of filters and by making comparisons with incomparable entities, erroneous computation of operating margins as well as failure to make correct working capital and risk adjustments. 8. The assesse further submitted that the AO has failed to give it credit for taxes paid on regular assessment of Rs.35,48,580/ -. 9. The CIT(DR) vehemently argued in support of the AO holding that it has not got time barred since it is a set aside case u/s.254 and therefore timeline prescribed in 144C(13) would not apply. 10. We have heard rival submissions in the light of facts of the case, evidence plac....