TaxTMI 
TaxTMI 
2025 (9) TMI 1755
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....ned senior counsel for the petitioner, Sri Y.V.Raviraj and Sri M.Dilip, learned counsel for respondent Nos.1 and 2 and Sri Aravind V. Chavan, learned counsel for respondent Nos.3 and 4. 3. Facts in brief, germane, are as follows: Petitioner is a company engaged in the business of providing software development, marketing, consultancy and related services to Blue Yonder inc., which was earlier known as i2 Technologies Inc. and its affiliate companies. For the assessment year 2003-04, return of income filed by the petitioner was picked up for scrutiny assessment and in the course of the assessment proceedings, the Transfer Pricing Officer passes an order determining transfer pricing adjustments. This led to the petitioner approaching the Commissioner of Income Tax (Appeals) by filing an appeal. On 31.01.2014, in terms of the order, the appeal comes to be partly allowed in favour of the petitioner - assessee. Aggrieved by the order dated 31.01.2014, the petitioner and the Revenue both preferred appeals before the Tribunal. The Tribunal in terms of its order dated 03.04.2017 disposes the appeals, remitting the matter back for determination of certain issues before the Transfer Pr....
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....s, seek to place reliance upon Sub-section (9) of Section 153 of the Income Tax Act, that would prevail and the Transfer Pricing Officer is entitled to pass consequential orders at any point in time. They would seek to defend the action of the respondents in not passing any order, pursuant to the liberty granted by the Tribunal on the score that there has been three mergers of the subject company and therefore, the orders are not passed. They further submit that the orders are not passed in the light of the jurisdiction of the respondents - Officers changing on account of the mergers of the petitioner. They would seek dismissal of the petition. 7. I have given my anxious consideration to the submissions made by the respective learned counsel for the parties and have perused the material on record. 8. The afore-narrated facts link in the chain of events and the dates are not in dispute. The issue is, whether the petitioner would become entitled to refund that is claimed. 9. The assessment year 2003-04 was picked up for scrutiny assessment is not in dispute. The petitioner files an appeal before the Commissioner of Income Tax (Appeals), who disposes the appeal, which both th....
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....ed by way of loan to the sister concern and on these investments, the assessee earned interest income and under these facts, it is stated by the Hon'ble Karnataka High Court that there is a direct nexus between the interest income and income of the business of the undertaking. In the present case, neither any of the authorities below have examined this aspect nor the relevant facts are available on records before us and hence, we feel it proper to restore this issue also to the file of the AO for fresh decision in the light of this judgment of the Hon'ble Karnataka High Court rendered in the case of CIT VS Motorola India Electronics (P) Ltd. (Supra) and as per above discussion after providing adequate opportunity of being heard to the assessee. We want to make it clear that the burden is on the assessee to establish this aspect that there is direct nexus between interest income and the business income of the assessee undertaking. Accordingly, these grounds regarding Corporate Tax issues are also allowed for statistical purposes. .... .... .... 21.From the above paras reproduced from the order of the Id. CIT(A), it is seen is that the Id.CIT(A) has no....
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....d by the Tribunal. The justification of the respondents - Revenue that there were mergers and therefore, no action could be taken is a submission that is noted only to be rejected, for the reason that the order of the Tribunal to be implemented, whether merger or otherwise, would not come in the way. 10. It is an admitted fact that no action is taken pursuant to the order of the Tribunal, which was passed on 03.04.2017. Even otherwise, the issue is completely answered by the judgment rendered by the coordinate bench of this Court in W.P.No.16223/2023, disposed on 05.02.2024, in the case of M/S. BIESSE INDIA PVT. LTD. VS. DEPUTY COMMISSIONER. The coordinate bench has held as follows: "14. As stated supra, the OGE at Annexure-P having been undisputedly passed the during the pendency of the present petition on 23.08.2023, even assuming that Section 153(3) was applicable and not Section 153(5), the due date for passing an order under this provision would also stand lapsed due to lapse of time as hereunder:- * As per section 153(3) is required to make fresh assessment within 31.12.2018 i.e., 9 months from the end of the financial year in which the order of the Tribu....
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....T vs. H.E.G Ltd., - [2010] 324 ITR 331 (SC); * CIT vs. Narendra Doshi - [2002] 254 ITR 606 (SC); * CIT vs .Syndicate Bank - [2020] 428 ITR 372 (Kar); * India Trade Promotion Organisation vs. CIT - [2014] 361 ITR 646 (Delhi); 19. Further, interest has to be granted under section 244A(1)(b) from the date of payment of tax up to the date on which refund is granted i.e., up to the credit of amount to the account of the assessee as hereunder:- * Instruction No. 2 of 2007; * Circular No. 209 [F. No. 212/485/76(A-II)] dated 11.01.1977; * Ingenico International India Pvt Ltd vs JCIT [WP(C) 5570/2022] (Delhi); * Wabtec Locomotive Pvt Ltd vs ACIT [W.P. (C) 4405/2022] (Delhi); * CIT vs Pfizer Ltd [1991] 191 ITR 626 (Bombay). 20. Insofar as the claim of the petitioner for interest under Section 244A(1A) is concerned, the petitioner - assessee would be entitled to the interest at the rate of 3% per annum in addition to the interest under Section 244A(1)(b) for the period beginning from the date following the date of expiry of the time allowed under section 153(5) to the date on which the refund is granted.....