TaxTMI 
TaxTMI 
2025 (2) TMI 1334
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.... law and liable to be quashed. 2. Erred in considering the transfer pricing adjustment of Rs. 126,43,35,714/- under the head Income from Other Sources as against Income from Business/Profession, thereby raising an incorrect demand of Rs. 8,67,89,409/- Without prejudice to above, the Learned AO and the Learned Transfer Pricing Officer i.e. the Deputy Commissioner of Income-tax (Transfer Pricing Officer)- ("the Learned TPO") has erred in: 3. Rejection of transfer pricing documentation maintained Rejecting the transfer pricing documentation maintained by the Appellant in accordance with the provisions of the Act- read with the Income Tax Rules, 1962 ('Rules') and making an adjustment of Rs. 125,71,39,712/-. 4. Transfer Pricing Adjustment should be done only on Associate Enterprises ("AE") transactions and not at entity level a) Making the transfer pricing adjustment at the entity level as against the AE level; b) Failing to consider the segmental information submitted during the course of the assessment proceedings and concluding the adjustment at an entity level: c) Considering the domestic transactions w....
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....7/- to Rs. 126,39,94,208/- 9. Imputed interest on outstanding receivables a) In considering trade receivables from AE as a separate international transaction and further erred in proposing transfer pricing adjustment in the nature of interest on receivables amounting to INR 3,41,506/- b) Not appreciating that the instant transaction is not covered in the definition of international transaction as defined u/s 92B of the Act in the facts and circumstances of the case: c) Delinking the inter-company receivables arising from the main international transactions and proceeding to benchmark the same as a separate transaction. d) Determining the arm's length interest on the alleged overdue receivables from overseas AEs at SBI short term deposit interest rate for the F.Y. 2017-18 as the ALP interest rate instead of LIBOR plus as prevalent in the international market for foreign exchange loans. 10. Working Capital Adjustment Making appropriate adjustments to account for differences in working capital employed by the appellant vis-å-vis comparable companies in respect of the subject transaction. 11. The Appellan....
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....rom the date of receipt of the directions issued by the DRP under sub-section (5). The said time limit is within one month from the end of the month in which the direction is received. Thus, the Legislature has specified the time period as the month in which such direction is received but limitation will be reckoned from the end of the said month. He has filed the report of the Assessing Officer showing that the directions were received by the Assessing Officer on 05/07/2022 and therefore, the limitation would expire on 31/08/2022. 5. We have considered the rival submissions as well as the relevant material available on record. There is no dispute that the DRP passed the directions on 17/06/2022 which were also sent to the assessee through email and uploaded in the ITBA on 17/06/2022 itself vide intimation dated 17/06/2022 as under: 6. The learned DR has filed the report of the Assessing Officer along with the order sheet notings downloaded from the portal and the relevant part of the order sheet noting are as under: 7. Thus, even as per these order sheet notings, the DRP order was uploaded on 29/06/2022 and sent to the Assessing Officer, Assessment Unit, Circle 2(1) Hyder....
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....ertion of that provision and the bare text and spirit of that section. Thus, we accord our approval to the interpretation as set out in the aforenoted decisions of the Bombay High Court. 19. Further, the procedure of assessment as provided under section 144C does not envisage or contemplate the interdiction or involvement of the TPO once a directive has been framed by the DRP. The role of the TPO comes to an end once an order as contemplated under section 92CA(4) of the Act has come to be framed and remitted to the AO. There was thus no occasion for the TPO having resumed proceedings post the passing of the direction by the DRP on 20 June 2022. 20. Undisputedly, the directive of the DRP came to be uploaded on the ITBA portal on 24 June 2022. It is additionally stated to have been dispatched through Speed Post to the third respondent (TPO) and the fourth respondent (Additional/Joint/Deputy/Assistant Commissioner of Income Tax, National Faceless Assessment Centre, New Delhi) on 27 June 2022. It is thereafter that the TPO appears to have passed the order dated 25 July 2022. 21. We, however note that paragraph 4(2) of the E-as, 2019 makes the following salien....
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....rder to meticulously examine the aspect of 'despatch' and 'receipt', in the present case, it is apt to quote the relevant SP,J & Dr.GRR,J Wps_44891 & 44915 of 2022 portion of letter dated 05.03.2024 filed along with I.A.No.1 of 2024 in the present matter, which reads as under: "2. In this regard, it is hereby stated that the direction dated 30.06.2022 were uploaded on ITBA portal on 30.06.2022. Further, physical copy of the Directions was also sent to the Assessing Officer on 30.06.2022 through Speed Post." (Emphasis Supplied) 31. The Income Tax Department through communication dated 30.06.2022 (Annexure P-19) informed that the order under Section 144C(5) dated 30.06.2022 is having Document No.(DIN) ITBA/DRP/M/144C(5)/2022- 23/1043689612(1). This is a system generated document and it does not require any signature. A conjoint reading of communications dated 30.01.2024 and 05.03.2024 (Annexure P-18) and communication dated 30.06.2022 (Annexure P-19) leaves no room for any doubt that DRP's directions were despatched on 30.06.2022 and also uploaded on the portal on the same date. Thus, the DRP/originator had lost control over it on the da....