2026 (6) TMI 1332

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....as 'the First Appellate Authority] in regard to assessment order dated 26.03.2022 u/s 147 read with section 144B of the Act passed by NFAC, Delhi [hereinafter referred as 'the AO]. 2. Heard and perused the records. The relevant facts are that the Appellant is engaged in the business of providing business advisory services along with business and management consultancy services to different industry sectors. As for the year under consideration the Appellant filed its return of income (ROI) u/s 139(1) of the Act and the case of Appellant was picked up for scrutiny assessment. Pertinent to mention is that during the assessment proceedings, the case of the Appellant was referred to Transfer pricing officer, ('Ld. TPO'), and ld. TPO accepted ....

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.... nature and adding back the same to the income of the Appellant. Ground No. 4-Without prejudice to the above, on the facts and circumstances of the case and in law, the NFAC, while sustaining the disallowance of Rs. 17,70,42,768, has erred in not allowing corresponding reduction in revenue of Rs. 21,24,51,322, ignoring that the Appellant is a cost-plus entity. Ground No. 5- That on the facts and circumstances of the case, the NFAC has erred in charging interest under section 234A of the Act amounting to Rs. 4,90,392, while computing the tax liability on the assessed income, ignoring the fact that the return of income of the w filed within the prescribed due date under the Act. Ground No. 6-That on the facts and ci....

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.... in respect of failure on part of the Appellant to disclose fully and truly any material fact or information. Thus, the mandatory conditions of failure on account of assessee to disclose fully and truly all material facts necessary for initiation of reassessment proceedings beyond the prescribed time limit of 4 years is not satisfied. On the contrary ld. Counsel has demonstrated that the Appellant had made a full and true disclosure of the expenses incurred in its audited financial statements (Note No. 18 under the head 'Employee Benefit Expenses under the row number 6 of the FS), placed on records of L.d. AO during the assessment proceedings u/s 143(3) of the Act. Further, in its return of income filed u/s 139(1) dated 28 November 2014....