TMI Blog2023 (8) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... liberate. We are therefore of the view that in the interest of justice and fair play, it would be expedient to restore the matter back to the file of the CIT(A) for denovo adjudication on merits after allowing reasonable opportunity of hearing to both the parties - Appeal of the assessee is treated as allowed for statistical purposes. - Shri M. Balaganesh, Accountant Member And Ms. Astha Chandra, Judicial Member For the Assessee : Shri Nageswar Rao, Advocate, Shri Akshay Uppal, Advocate For the Department : Shri Manu Chaurasia, Sr. DR ORDER PER ASTHA CHANDRA, JM The appeal filed by the assessee is directed against the order dated 15.09.2021 of the Ld. Commissioner of Income Tax (Appeals) 42, Delhi ( CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansfer Pricing Report (viz. Anand Projects Limited and Wapcos Ltd.), the Comparable Set has 6 Companies and therefore, there was no requirement to undertake a fresh search to identify the arm's length margin. 5. The Ld AO/Ld TPO/ Ld CIT(A) erred on facts in excluding following companies as comparables, without appreciating that in cognizance of Rule 10B(2)(b), the functional, assets and risk profile of these companies are comparable with that of the Appellant. Anand Projects Limited, and Wapcos Ltd. 6. The Ld AO/ Ld TPO/ Ld CIT(A) erred on facts in excluding following as comparables, without appreciating the fact these companies faced peculiar economic circumstances and thereby ignoring the Rule 10B(2)(b) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O/ Ld CIT(A) erred on the facts and law by imputing interest on the outstanding receivables without appreciating the fact that outstanding receivable is not a separate international transaction and resulting from primary international transactions 12. The Ld AO/ Ld TPO/ Ld CIT(A) erred in on the facts and law by treating Outstanding receivables as notional loan while ignoring the fact that Appellant is purely debt free entity and utilizing its own funds and did not carry any interest cost on its funds 13. The Ld AO/ Ld TPO/Ld CIT(A) erred on the facts by not allowing working capital adjustment to the Appellant and which takes care impact of outstanding receivables/ payables 14. The Ld AO/ Ld TPO/ Ld CIT(A) erred on the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in law in initiating penalty proceedings u/s 271(1)(c) of the Act 19. The Ld AO/ Ld TPO erred on facts and in law in levying interest under section 234B and 234C of the Act. 3. Briefly stated the assessee is a foreign company incorporated in India. Its principal business is to provide technical consultancy services to its associate enterprises as well as unrelated third party. For AY 2016-17, it filed its return on 30.11.2016 declaring income of Rs. 1,66,37,026/-. The case was selected for scrutiny under CASS. Statutory notices were served online upon the assessee which were responded to. The assessee offered its income in India on net basis. 4. During the year, the assessee entered into the following international transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions before Hon ble DRP nor submitted any reply to the Ld. AO within the stipulated period. The Ld. AO therefore proceeded to pass the final order and completed the assessment on 17.02.2020 under section 143(3) r.w. section 144C(3) of the Act on total income of Rs. 3,94,86,270/- including therein cumulative adjustment of Rs. 2,28,49,247/- under section 92CA of the Act. 6. The assessee carried the matter in appeal before the Ld. CIT(A). The appeal was filed late with petition to condone the delay due to Covid-19. The Ld. CIT(A) condoned the delay. However, despite various opportunities given, the assessee did not attend the appeal proceedings nor filed any written submission before the Ld. CIT(A). He therefore passed ex-parte order confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Ld. CIT(A) has not passed ex-parte order on merits of the case. An affidavit sworn by the authorised signatory of the company has been brought on record by the assessee deposing therein that notice(s) sent to the email of the employee who left the company did not reach the concerned officials of the assessee and that non-compliance was not deliberate. We are therefore of the view that in the interest of justice and fair play, it would be expedient to restore the matter back to the file of the Ld. CIT(A) for denovo adjudication on merits after allowing reasonable opportunity of hearing to both the parties. We order accordingly. 11. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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