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2022 (11) TMI 874 - AT - Income TaxValidity of the final assessment order due to non-service of the Dispute Resolution Panel’s (DRP) directions - AR contended that the directions given by the DRP u/s.144C(5) was not served on the assessee - HELD THAT:- Insofar as the assessee is concerned, the requirement is to give opportunity of hearing before issuing the direction and there is no further statutory requirement of communicating such direction to him. The AO is required to pass the final order in conformity with the direction. There is no specific legal recourse available to the assessee against the adverse direction of the DRP except for filing an appeal against the final assessment order giving effect to such direction. The service of the direction by the DRP on the assessee, in terms of Rule 11 of Income-tax (DRP) Rules, 2009, is only a procedural requirement put in place by delegated legislation, without any corresponding provision in the enactment. In that view of the matter, it cannot be said that non-service of the direction of the DRP to the assessee would vitiate the final assessment order itself. Notwithstanding the above position, AR candidly admitted before the Tribunal that, on the assessee writing to the DRP about non-communication of the direction, the DRP responded by mentioning that direction dated 11-03-2021 was promptly e-mailed to the assessee on that very date itself. No adverse contrary evidence has been brought to our notice on behalf of the assessee. Under such circumstances, we are satisfied that this ground is devoid of merit and hence deserves the fate of dismissal. We order accordingly. TP addition in the international transaction of `Payment of Royalty for use of technology’ - HELD THAT:- Following the view taken by the Tribunal for the A.Y. 2015- 16, we approve the segregation of payment of Royalty from other international transactions under the ‘Manufacturing segment’ and send the matter to the DRP for disposing of the assessee’s objections on the further segregation of Royalty payment on exports and domestic sales and the consequential transfer pricing adjustment in respect of export sales to the AEs. Non-granting of deduction u/s.80G - HELD THAT:- AO did not dispute the deduction and adopted the total income offered by the assessee (after deduction u/s.80G) for making certain disallowances and computed the total income accordingly. This was done in the draft as well as the final assessment orders. However, in the Computation sheet, AO omitted to grant the deduction of Rs.6.00 crore, as is apparent from column no.12 showing the figure of ‘zero’ against the total deduction against Chapter VI-A. Under such circumstances, we direct the AO to verify the assessee’s contention and allow deduction of Rs.6.00 crore, if not earlier allowed, after due opportunity of hearing to the assessee. Income during the scrutiny assessment u/s.143(3) - HELD THAT:- We direct the disposal of the application made by the assessee u/s.154 of the Act and then make suitable changes to the figure of income u/s.143(1) as the base figure for determining income u/s.143(3), if warranted.
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