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2015 (1) TMI 357 - AT - Income TaxTPA - Violation of principles of natural justice – Opportunity of being heard not provided to assessee – Very few time of only 4 days provided to assessee to prepare and submit the respose - Held that:- Though the assessment proceedings began in November, 2009, TPO issued show-cause notice to the assessee only in September 2010 directing it to submit details and supporting documents, which are voluminous and requires reasonable time for collecting and producing the same - the TPO issued the show cause notice on 20th September 2010, directing the assessee to submit the entire documents asked by him before 27th September 2010, by which the assessee only got 4 working days to comply the same - Since it was practically impossible to submit the entire documents, the assessee submitted whatever it could before the TPO who passed orders without considering the documents which ought to have been looked into by him provided sufficient time was granted to the assessee - the assessee filed all the relevant documents asked by the TPO before the DRP. The DRP has not considered the aforesaid evidences including the cost benefit analysis, the details of the service rendered by Canada HO, benefits derived, allocation keys and actual cost-allocation work wide to AE’s and other documents relevant to adjudicate the issues before it – thus, assessee rightly contended that sufficient opportunity was not given to the assessee to furnish the requisite details and documents to answer the queries raised by the TPO - At any rate 4 working days is insufficient to produce the voluminous documents necessary for answering the queries raised by the TPO along with supporting documents - the TPO’s order was vitiated for violation of natural justice and the DRP has also not gone into the evidence filed before it by the assessee – thus, the order is set aside and the matter is remitted back to the AO/TPO for fresh adjudication – Decided in favour of assessee.
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