2025 (10) TMI 357

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....250 of the Income-tax Act, 1961 [hereinafter referred to as "Act"]. 2. The grounds of appeal are as follows: "1.1. On the facts and in circumstances of the case and in law, the Learned National Faceless Appeals Centre ("Ld. NFAC") vide order dated October 17, 2024 under section 250 of the Income tax Act, 1961 ("the Act") erred in setting aside the entire assessment order dated December 19, 2023 ("Impugned assessment order") under section 144 r.w.s 144C(3)/144B of the Act for fresh assessment to the Ld. AO("the Ld. AO") and erred in not adjudicating the grounds raised in the appeal. 1.2. The Appellant prays that the order dated October 17, 2024 passed by the Ld. NFAC under section 250 of the Act be quashed and set aside.....

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....3. Brief facts are that the assessee filed its return declaring income of Rs. 1738,57,16,720/- for A.Y. 2021-22 on 04.03.2022. The case was selected for complete scrutiny as the assessee had shown large value of international transactions in the nature of Technical service fees. Reference was made to the Transfer Pricing Officer(TPO) for computation of Arm's Length Price (ALP) u/s. 92CA of the Act, of commission paid on the guarantees issued in favour of its Associated Enterprises(AEs). The ALP of Guarantee Commission was computed and Rs. 4,20,051/- adjustment was proposed vide order u/s. 92CA(3) of the Act. Vide draft assessment order, Ld. AO proposed to add Rs. 4,20,051/- on account of variation in respect of TP issue, after considerin....

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....T(A) has mechanically set aside the order treating it as ex-parte, to the Ld. Assessing Officer. Instead he should have expunged the erroneous reference to section 144 and considered the issue relating to TP adjustment on merits in the light of submissions made before him. On the other hand, Ld. DR has relied on the order of lower authorities and submitted that since ld. CIT(A) has restored the matter to the AO, there is no cause for grievance by the assessee. 6. We have considered the rival submissions and perused the material placed on record. It is clear that the Ld. AO had finalized the assessment after considering the assessee's submissions and made an addition of Rs. 4,20,051/- on account of ACP of corporate guarantee commission....