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TMI Blog2012 (10) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... cing Officer-I at Chennai under section 92CA, dated 30-10-2009 and also in the light of the directions issued under sub-section (5) of section 144C, read with sub-section (8) of section 144C, by the Dispute Resolution Panel (DRP), Chennai through their proceedings dated 28-9-2010. 2. The assessee has raised two sets of grounds in the present appeal placed before us. The first set of grounds relates to transfer pricing matters. Those grounds are such that: * Placing reliance on earlier year's proceedings. * Rejection of assessee's search. * Conditions under section 92C(3) not satisfied. * Non consideration of multiple year data contention. * Rejection of segmental financials. * Unwarranted fre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled or resolved. The learned counsel argued that in such circumstances, the DRP should have settled or resolved the issues, but strangely, on that ground they upheld the order of the Transfer Pricing Officer in toto. To make his arguments clear he invited our attention to paras 3.1, 3.2 and 3.3 of the order of the DRP, as extracted below:- "3.1 The A.O. in the impugned draft assessment order after discussing the facts of the case and taking into consideration the T.P.O's order, made an addition of Rs.44,74,32,138/-. The T.P.O. in the order u/s.92CA(3) of the Act dated 30/10/2009 analysed the international transactions entered into by the assessee with its AEs and for the reasons discussed therein held that the assessee's transactions with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. The assessee is engaged in the business of manufacturing and selling of automobiles, its parts and accessories thereof. It has entered into international transactions with its AEs, both import and export. In this connection, the facts recorded by the T.P.O. in the T.P.O's order are not disputed. What the assessee has disputed is the interpretation of such data and facts. The learned ARs have made arguments largely on the legal issues. The T.P. audit is basically a fact based exercise. The law on transfer pricing in India is not yet fully evolved and contentious issues are not yet settled. Therefore, the assessee's reliance placed on various court decisions in support of its contention that the T.P.O. has erred in recommending the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For this proposition the learned counsel relied on the judgment of the Hon'ble High Court of Delhi in the case of Vodafone Essar Ltd. vs Dispute Resolution Panel-II and Others, dated December 2, 2010, delivered while disposing of Writ Petition No.7028/2010. 8. The learned standing counsel appearing for the Revenue, on the other hand, contended that the DRP has upheld the draft assessment order passed by the Assessing Officer in toto and it implies that the DRP has consciously dismissed the reference made by the assessee. Therefore, it is a proper order passed under the provisions of law and the Tribunal may dispose of the appeal on the merits of the various contentions raised by the assessee. 9. The learned standing counsel furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to enable him to complete the assessment. Where the Assessing Officer frames a draft order and assessee raises a number of objections thereto and when the DRP does not dispose of those objections, the directions, if at all, issued by the DRP will not enable the Assessing Officer to complete the assessment. 12. Sub-section(6) thereof provides that the DRP shall consider so many points before giving directions to the assessing authority, such as considering the draft order itself, objections filed by the assessee, evidence furnished by the assessee, reports of other authorities, records of the case, other evidences on record and further, if necessary, the DRP may itself cause enquiries. It is after conforming to all the above requirements ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fresh consideration. Certain issues decided by the Tribunal may be taken up before the Hon'ble High Court in appeal, either by the assessee or by the Revenue. In such circumstances, the various issues raised in the appeal filed by the assessee for a particular assessment year will be placed before different authorities at different levels, issuewise and groundwise. If the appeal is split into pieces and spread before various authorities, practically it is very difficult for the Assessing Officer to pass the final order to give effect to the appellate and court directions and it will be difficult for the assessee as well to appear before different authorities for arguing different points. It is always better that the grounds and the issues r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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