9911796707
TMI Blog2022 (9) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Income Tax Appeal has been filed seeking a direction for setting aside the order dated 21st September, 2020, passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 12/DEL/2020 for the Assessment Year ('AY') 2014-15. 2. The appellant in compliance with the order dated 25th July, 2022 has placed on record a control chart proposing seven (7) questions of law. 3. We have heard the learned counsel for the parties at length and thereafter, framed the following three (3) questions of law:- 1. Whether on the facts and in the circumstances of the case and in law, the ITAT erred in not holding that the final assessment order dated 28.11.2019 passed under Section 143(3) r.w.s 144C was barred by limitation in terms of Section 153 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anding the issue of reduction of provision of taxes while computing Book Profits in terms of Section 115JB of the Act when all the facts/evidences/details pertaining to this issue were already placed on record before the ITAT? 6. The said questions are framed as under and were taken up for hearing with the consent of the parties With respect to question of law (i), the Dispute Resolution Panel ('DRP') had directed the AO that the expenses incurred on account of Management Consultancy Fees paid to AE should be disallowed on protective basis under Section 37(1) of the Income Tax Act, 1961 (for short 'the Act') and this was challenged by the assessee before the ITAT. The ITAT concluded that the evidence placed on record by the Assessee is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foresaid addition before the ITAT, inter alia, on the ground that the said receivables were not accounted in the books of accounts on accrual basis due to the uncertainties attached to the said receivables and the said receivables are to be accounted only upon actual receipt. The ITAT after perusal of the e-mails exchanged between the senior executives observed that it would be prudent if the AO verified the receipt of the said 'out of book receivables' from the insurance companies banks, government bodies and other corporate entities. The ITAT observed that since the entire addition has been made by the AO on the basis of the e-mails, it would be appropriate to restore the issue to the file of the AO with a direction to verify the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT observed that the figure of Rs. 1782.09 Crores which pertains to reversal of unutilized provision for taxes in the current year, requires verification. It accordingly restored the said issue to the file of the AO for verifying the correctness of the figures. 8.1. The learned counsel for the appellant is aggrieved by the said remand as it is stated that the verification of figures was not doubted either by the AO or the DRP. Further, the said figures can also be verified from the audited accounts and computation of the book profits of the amalgamated entities. He further states that the issue arising for consideration before the ITAT is only to determine whether the Assessee was entitled to claim deduction of unutilized provision of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her information from the AO for determining the said three (3) issues pertaining to Management Consultancy Fees, Out of Book Receivables and computation of book profits. Thus, 11. In this regard the reliance placed by the appellant on the judgment of this Court in Microsoft India (R&D) Pvt. Ltd. vs. Deputy Commissioner of Income Tax, (2021) 431 ITR 483 is apposite wherein this Court has held as follows:- "12. Mr. Rao submits that the learned ITAT has erred in restoring for adjudication, the questions of law to the file of the AO, thereby allowing him a second inning on a topic which both the AO and the DRP have already considered. He submits that the impugned order fails to finally decide the issue or provide guidance on questions of law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take up and decide the said issues urged by the Assessee in its appeal on the basis of the documents filed by the Assessee. We clarify if there is any further verification or evidence required by the ITAT for determining the said issues it shall be entitled to seek a remand report. Thus, the appeal of the Assessee is restored to the file of the ITAT for AY 2014-15 to the limited extent noted above. 13. We clarify that we have not examined the said three (3) issues on merits and nothing said in this order may be considered as an expression of merits. Question of law proposed as (F) 14. The appellant has also proposed the following question of law:- "Whether on the facts and in the circumstances of the case and in law, the ITAT erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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