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2023 (8) TMI 669 - ITAT HYDERABADTP Adjustment - non-issuance of notice under proviso to section 92C(3) - grievance of the assessee is that DRP did not consider the plea of the assessee, but, upheld the action of the TPO, claiming that neither the TPO nor the learned DRP gave any opportunity to file the objections against the comparable adopted by the learned TPO - HELD THAT:- It could be seen from the proviso to section 92C(3) or under sub-section (2) of section 92CA of the Act that issuance of notice to the assessee is mandatory. At the same time, it could be seen from the excerpts of the remand report culled out by the DRP of their direction, no such notice was admittedly issued to the assessee. Apart from this, there were 16 comparables as chosen by the assessee - Not even a single entity selected by the assessee is considered by the learned TPO. Without referring to the comparables selected by the assessee, the learned TPO recorded that the assessee is specialized in managed document review and contract management, it is, therefore, providing high end legal services and, therefore, the assessee is not comparable with high end ITeS and has to be benchmarked under ITeS. We are of the considered opinion that the learned TPO must be directed to issue notice contemplated under proviso to section 92C(3) or under sub-section (2) of section 92CA as the case may be and complete the assessment in accordance with law. At the same time, the learned TPO will also keep in view the assessment orders for the assessment year 2013-14 and 2014-15 passed pursuant to the set aside of the same by the ITAT. Interest charged on delayed payments on trade receivables - AR submitted that this issue is squarely covered by the order [2023 (3) TMI 1392 - ITAT HYDERABAD] in assessee’s own case for the assessment year 2014-15 wherein set aside the issue to the file of the AO/TPO. We set aside the issue to the file of AO/TPO with a direction to follow the same for this year also. Grounds are accordingly treated as allowed for statistical purposes.
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