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2018 (10) TMI 186 - AT - Income TaxTPA - ALP adjustment relating to its international transactions in the nature of provision of software services to its associate Eenterprises (AE) - working capital adjustment - Held that:- DRP has made it clear that the Assessing Officer would apply SBI’s prime lending rate as on 30th June of the relevant previous year as the interest rate qua the issue before us. The Revenue fails to dispute all these intervening developments. As in assessee's own case have also accepted similar working capital adjustment contentions against the Revenue. We therefore restore the instant lis back to the TPO for afresh proceedings qua the instant working capital adjustment to be considered / granted as per law Validity of assessments on account of AO’s failure in not issuing sec. 143(2) notice - scrutiny assessment - DCIT/ACIT jurisdiction - Held that:- DCIT/ACIT, Circle-II(4), Chennai lacked jurisdiction to issue the sec.143(2) notices. The assessee duly brought on record its objections to this effect before the Assessing Officer in its letter dated 08.10.2014. All this proved to be a futile exercise as the Assessing Officer framed assessment going by the earlier scrutiny notice(s) only and rejected the said jurisdictional plea. Thus all the three impugned assessments are non-est in the eyes of law since the DCIT/ACIT, Circle-11(4), Chennai issuing the section 143(2) notice(s) did not have jurisdiction and the assessing authority in Kolkata did not issue such scrutiny notices. We quash all these three assessments therefore for this precise reason alone - Decided in favour of assessee.
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