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2020 (8) TMI 410 - AT - Income TaxDraft assessment order u/s 144C in the name of a non-existent company - Amalgamated Company / Merger - HELD THAT:- There is no obligation upon the assessee to intimate the Assessing Officer and secondly, as mentioned elsewhere, vide letter dated 10.04.2018, the assessee has intimated the AO regarding the dissolution of BICIPL and to transfer all proceedings in the name of the appellant, BIPL. Considering the factual matrix we hold that the draft order framed u/s 144C(1) of the Act is in the name of a non-existent company and accordingly, void ab initio, making all subsequent proceedings non- est. First substantive grievance is, accordingly, allowed. TP adjustment on account of outstanding receivables - HELD THAT:- The undisputed fact is that the assessee is a debt free company. It is also not in dispute that no interest was paid to the creditor/supplier nor any interest has been earned from unrelated party. Moreover, being a 100% captive service provider, the revenue of the assessee is 100% from its AEs. In our considered opinion, the question of receiving any interest on receivables does not arise. Considering the facts of the assessee in hand, in totality, we do not find any merit in the TP adjustment of ₹ 22.16 lakhs and the same is, accordingly, directed to be deleted. TDS u/s 192 or 195 - salary paid to expatriates - Failure of non-deduction of tax at source - assessee explained that reimbursement of salary cost to expatriate employees is not taxable as FIS, both under the provisions of the Act and relevant DTAA, and no withholding tax was required on the same - HELD THAT:- As perused the TDS certificates, Forms 15CA and 15CB, tax deducted by the assessee and all these documents are part of the paper book. There is no dispute that the assessee has deducted tax at source u/s 192 of the Act. On the given facts of the case, we are of the considered opinion that the provisions of Section 195 of the Act do not apply. Considering the facts of the case in totality, in light of judicial decisions referred to hereinabove, we do not find any merit in the disallowance made by the Assessing Officer/DRP. We, accordingly, direct for deletion of addition .
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