Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (2) TMI 30 - AT - Income TaxUpward transfer price adjustments - Provisions contemplated u/s. 144C was not followed - assessee contended that the AO has failed to follow the mandatory provisions of section 144C of the Act, without issuing any draft assessment order, passing of final assessment order suffers from infirmity and to be treated the same as bad in law - HELD THAT:- This Tribunal discussing the provisions u/s. 144C of the Act and held the final assessment order passed by the AO without issuing draft assessment order is against the provisions of the Act. As decided in LIONBRIDGE TECHNOLOGIES PVT. LTD., [2018 (12) TMI 764 - BOMBAY HIGH COURT] draft assessment order is necessary in terms of section 144C(1) of the Act before the AO can proceed to pass final assessment order. Assessee accepted the upward TP adjustment in relating to international transactions by way of vide its communication as that of in the present case involving A.Ys. 2010-11 and 2011-12. This Tribunal considered the submissions of Revenue that having participated for the assessment proceedings the assessee is estopped from challenging the action of AO for non-issuance of draft assessment order. The Tribunal discussed the same and observed where mere consent of parties does not bestow the jurisdiction if the order is beyond jurisdiction. As relying on assessee's own case [2019 (8) TMI 763 - ITAT PUNE] the said order being against provisions of section 144C of the Act. In view of our setting aside the assessment order passed in the case under section 143(3) of the Act, the grounds of appeal raised by assessee on merits and the grounds of appeal raised by Revenue become academic in nature - Decided in favour of assessee.
|