9911796707
TMI Blog2023 (12) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 (1), New Delhi (the Ld. AO) vide final assessment order dated August 24, 2012 (received by the Appellant on August 29, 2012) passed under section 143 (3) read with section 144C (13) of the Income Tax Act, 1961 (the Act) is not in accordance with the law and therefore not sustainable. Transfer Pricing ("TP") Adjustment - INR 22,648,798 That the Hon'ble Dispute Resolution Panel (DRP), New Delhi has erred both in law and on facts by summarily rejecting the Appellant's objections to the draft order dated November 24, 2011 passed by the Ld. AO under section 143(3) read with section 144C(1) of the Act. The Hon'ble DRP while issuing directions under section 144C(5) of the Act did not consider the facts and merits of Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Assessee at the time of maintenance of Transfer Pricing Documentation. 5. By not providing the complete information which was called pursuant to issuance of notice under Section 133(6) of the Act and by conducting the assessment based on unfair analysis. 6. By misconstruing the functional and risk profile of the Assessee and by not allowing risk adjustments. 7. By selecting comparable having dissimilar functional profile vis-àvis the Assessee. 8. By applying the wages-to-sales ratio based upon conjectures and surmises and further, applying an arbitrary filter of 25 percent without following a cogent economic basis and without establishing any statistical veracity of the presumption/ hypothesis framed. Further, the L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has international transactions for which it filed form No.3CEB as per provisions of section 92E of the Act relating to international transactions. Since the total transactions were excess of Rs. 5 crores. The case was referred to the TPO and the TPO vide order dated 31.10.2011 proposed an addition of Rs. 440638092/-. 5. Objections were raised before the DRP and the DRP vide order dated 13.06.2012 dismissed the objections and pursuant to the order of the DRP the final assessment order was framed by making addition of Rs. 440638092/-against which the assessee is in appeal before us. 6. The Transfer Pricing Adjustment comprises of two parts (i) TP adjustment - US Transactions Rs. 417989294/- (ii) TP adjustment - non US Tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elating to Hewitt India for A.Y. 2006-07 to 2010-11 by adopting the values relating to US related international transaction as below :- 13. The assessee vide letter dated 26.12.2017 gave its acceptance as under:- 14. In the light of the above we have no hesitation to direct the AO / TPO to adopt the same approach for the non US transactions as adopted in the MAP for US transactions and determine the TP adjustment, if any, after affording a reasonable and sufficient opportunity of being heard to the assessee. For this proposition we draw support from the decision of the Hon'ble High Court of Bombay in the case of J.P. Morgan Services India Private Limited 105 taxmann.com 40. The relevant findings read as under :- "2. For convenience, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no such agreement has been arrived at. The case of the assessee on the other hand is that in the present case the tribunal has not automatically lifted parameters laid down in the MAP. Firstly, the MAP itself has been drawn after detail consideration of the Arm's Length Price. In absence of any material difference between the US based transactions and assessee's non-US based transactions, the revenue cannot raise any such objection to approach adopted by the tribunal."
15. In the light of the above the issues restored back to the AO / TPO to be decided afresh as direct here in above.
16. In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 20.12.2023 X X X X Extracts X X X X X X X X Extracts X X X X
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