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2023 (2) TMI 1003 - AT - Income TaxTransfer pricing - Adjustment made to software development segment - modified return filled - Appellant has signed an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes ('CBDT') - additional income offered in the Modified Return of Income filed within statutory timeline revising its income - HELD THAT:- Unfortunately in this case, the A.O has retained original transfer pricing adjustment without considering the modified return filed as per the mandate of section 92CD(4) - modified return was filed on 17-03-2022 and the ld. D.R.P has given their findings on 25-04-2022. Thereafter, the final assessment order was completed by the A.O on 30-05- 2022 which means that already the modified return was before the A.O., but he has not considered the same violating the provisions of section 92CD(4) - assessee submitted before us, at the time of hearing that this ground may be remanded back to the file of the A.O for giving appropriate consideration to the modified return filed by the assessee. D.R did not raise any objection if the ground is remanded back to the file of the A.O - thus in the interest of justice, therefore, this ground should be remanded back to the file of the A.O for re-adjudication. Addition u/s 37 - lease rental paid which was held as inadmissible expenses - office of the assessee has not started functioning - Counsel submitted that the assessee was unable to submit evidences regarding merits of this issue before the A.O and also before the ld. D.R.P. due to covid pandemic prevailing at that point of time - HELD THAT:- The contentions raised by the ld. Counsel for the assessee are valid and true. The evidences on the issue of lease rental paid could not be submitted by the assessee due to the circumstances prevailing at that point of time viz. covid pandemic. In the interest of justice, therefore, we admit the evidences as additional evidences and remand this ground to the file of the A.O for readjudication as per law complying with the principles of natural justice while considering the evidences furnished by the assessee. Ground No. 2 is allowed for statistical purposes. Disallowance of Primary Rate Interface (PRI) line charges paid to telecom companies - HELD THAT:- This ground is covered in favour of the assessee in assessee‟s own case for A.Y. 2016-17 [2022 (11) TMI 444 - ITAT PUNE] relied on the decision of Lee & Murihead (P) Ltd. [2019 (4) TMI 1871 - BOMBAY HIGH COURT] and Kotak Securities Ltd. [2016 (3) TMI 1026 - SUPREME COURT] while providing relief to the assessee - Ground allowed in favour of the assessee.
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