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2013 (9) TMI 689 - AT - Income TaxTransfer pricing adjustments - PE - Assesee contended that AO had not passed the order as per the directions given by the DRP, that there was violation of provisions of section 144C(13) of the Act. – Held that:- Open defiance of the directions of the DRP by an adamant AO, non disposal of application of the assessee filed u/s. 154 of the Act and request of the assessee to direct the AO to follow the orders of the DRP unmistakably prove one thing that assessee has been compelled to approach the Tribunal because of the disobedience and inaction of the AO. Helplessness of the assessee is evident from the fact that it is ready not to press other grounds of appeal, if the AO is directed to act as per law. If even for its rightful claim an assessee has to approach a judicial forum, then it has to be held that AO had miserably failed in performing his duties. As a representative of the State, he is duty bound to collect only 'due' taxes and not only taxes. On two counts behavior of the AO can be held to be perverse-first he did not obey the instructions of the panel and second he did not take any action with regard to the rectification application filed by the assessee – Decided in favor of Assessee.
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