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2023 (11) TMI 998 - AT - Income TaxValidity of final assessment order u/s 144C as not conforming binding directions of ld. DRP - upward adjustment in ALP of international transactions - DRP’s directions could not be complied with as the order giving effect of the TPO was not received by the AO at the time of the passing of the order - HELD THAT:- As final assessment order is without incorporating of DRP’s directions. As stated above, the reason is that DRP has given certain directions which were to be given effect by the TPO. The AO till passing the final assessment order has not received the order giving effect by the TPO. In the case of Anand NVH Products Pvt. Ltd. [2021 (8) TMI 1262 - DELHI HIGH COURT] we noted that assessment order has been passed under section 143(3) read with section 144C of the Act without waiting for the decision of the DRP, thus in this case set aside the final assessment order along with notice of demand and restored the matter to the level of DRP. In the case of SRF Ltd. [2021 (7) TMI 1298 - DELHI HIGH COURT], the final assessment order was passed without incorporating the DRP’s directions. Thus in such a situation, quashed the final assessment order and the demand of notice and remitted the matter to DRP for consideration u/s 144C. Also in Fibrehome India Pvt. Ltd. [2021 (12) TMI 944 - DELHI HIGH COURT] the final assessment order was passed without incorporating the directions of the DRP, thus as referring to cases of Anand NVH Products Pvt. Ltd. and SRF Ltd. [2021 (8) TMI 1262 - DELHI HIGH COURT] remitted the matter to DRP keeping in view of the scheme of section 144C. Thus, it is emanating that in the final assessment order passed without incorporating the DRP’s directions, the matter has been remanded to the DRP by the Hon’ble High Court to give effect to the scheme of section 144C of the Act. The above case laws are binding upon us. We remit the issue to the file of AO. AO shall pass an order incorporating DRP’s directions which has been given effect by the TPO. Assessee appeal is allowed for statistical purposes.
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