TaxTMI 
TaxTMI 
2026 (5) TMI 551
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.... subsidiary of Denso Corporation, Japan. It commenced its commercial operation in December 1999. It is engaged in the manufacturing of automotive components and mostly sales to automobile manufacturers in India. It has a manufacturing plant in Manesar and Jhajjar District of Haryana. Assessee filed its return of income for AY 2021-22 on 11.03.2022 declaring total loss of Rs. 98,58,96,558/-. The return of income was processed by the CPC on 22.09.2022 determining the total income of Rs. 5,60,93,96,980/-. The case of the assessee was selected for scrutiny through CASS on the following issues :- (i) Large value of international transactions in nature of technical service fees (TP Risk Parameter); and (ii) Larger international ....
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..... 4. Further assessee received notice u/s 143(1)(a) of the Act with the proposed adjustment of Rs. 1,62,86,178/- on account of profit chargeable to tax to tax u/s 41 of the Act as reported in the tax audit report. The assessee received final intimation u/s 143(1) of the Act on 22.09.2022 with the following adjustments :- (i) Rs. 6,57,88,62,652/- based on the GST reported in Clause 16(a) of the tax audit report; (ii) Rs. 1,62,86,178/- based on the audit report; and (iii) Rs. 1,44,708/- towards employee contribution to labour welfare fund to the extent not credited in the employee account. 5. A rectification application filed by the assessee before the jurisdictional AO on 23.09.2022 for the reason that rectif....
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....ills Co. Ltd.[2013] 32 Taxmann.com (379)], wherein the Hon'ble High Court held that section 145A of the Act begins with non obstante clause and provisions section 145A direct inclusions of amount of tax, duty etc. for the purpose of valuation of inventories. 4. Whether on the facts and circumstances of the case and in law, the ld CIT(A) has erred in allowing the appeal of the assessee by deleting the addition made by the AO u/s 41(1) of the Income Tax Act, amounting to Rs. 1,62,86,178/- on account of provision for technical general fees and provisions for test and sample." 6. At the time of hearing, ld. DR brought to our notice grounds of appeal filed by the Revenue and submitted that the additions proposed by the CPC u/s 14....
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....iny assessment, rectification could not be filed electronically. (copy of rectification application is at pages 374-378 of the appeal set) 19-10-2022 Appeal filed before Ld. Commissioner of Income Tax (Appeals) against intimation order u/s 143(1) 18-12-2023 The Ld. AO passed the draft assessment order under section 144C(1) of the Act, wherein, rectification application filed by the Respondent was considered and complete relief was allowed in respect of adjustment made by the CPC. (refer para 4 on page 350 of convenience compilation for relevant findings) 19-01-2024 Considering the relief given by the Ld. AO in the draft assessment order, letter submitted before the Ld. CIT(A) requesting for an adjournment till the date of ....
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....during assessment proceedings and the AO has considered the rectification application filed by the assessee u/s 154 of the Act. After considering the same, the AO gave relief to the assessee based on the merits in the case and since assessee has filed an appeal against the order passed u/s 143(1) of the Act before the ld. CIT (A) and ld. CIT (A) also gave relief to the assessee. Before us, Revenue is not in fact against the relief granted by the ld. CIT(A). As per the factual matrix available on record, we observed that the additions made by the CPC u/s 143(1)(a) of the Act was subsequently rectified by the AO. Therefore, once the assessment is selected for scrutiny, the intimation order passed u/s 143(1)(a) is merged with the scrutiny asse....