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TMI Blog2023 (4) TMI 1362X X X X Extracts X X X X X X X X Extracts X X X X ..... d circumstances of the case, and in law, the Learned Assessing Officer ('Ld. AO') / Learned Transfer Pricing Officer ('Ld. TPO') [in pursuance to the directions of the Honorable Dispute Resolution Panel ('Hon'ble DRP')] erred in enhancing the income of the Appellant by INR 1,083,185,753 holding that the international transaction pertaining to provision of Information Technology ('IT') services do not satisfy the arm's length principle envisaged under the Income- tax Act, 1961 ('the Act'), and in doing so have grossly erred in: 1.1 disregarding the Arm's Length Price ('ALP') as determined by the Assessee in the TP documentation maintained by it in terms of section 92D of the Act read with Rule 10D of the Income-tax Rules, 1962 ('the Rules' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ees contribution of INR 5,32,27,364 deposited on or before the due date prescribed in the PF Act and accordingly, allowable under section 36(1)(va) of the Act. The Ld. AO and Hon'ble DRP grossly erred in making adjustment under section 36(1)(va) of the Act amounting to INR 3,29,28,122 for delay in deposit of employees contribution to provident fund without appreciating the fact that the contributions were deposited before the due date of filing of return and hence, were to be allowed in accordance with the provisions of section 43B of the Act. 3 Without prejudice to the above, Ld. AO [in pursuance to the directions of the Hon'ble DRP] grossly erred in not allowing additional deduction under section 10AA of the Act due to consequential ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g IT services to its parent company, namely, Amdocs Development Limited, Cyprus. The Return of Income for the assessment year 2018-19 was filed on 30.11.2018 declaring total income of Rs. 272,07,10,780/-. The appellant also reported the international transactions with its AEs. Therefore, the Assessing Officer made a reference to the TPO for the purpose of benchmarking the above international transactions. The TPO vide order dated 30.07.2021 passed u/s 92CA(3) suggested TP adjustments of Rs. 111,10,13,940/-. 4. On receipt of the TPO's order, the Assessing Officer passed a draft assessment order u/s 143(3) r.w.s. 144C after making TP adjustment of Rs. 111,10,13,940/- and making disallowance u/s 36(1)(va) in respect of belated payment of empl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn. 9. Ground of appeal no. 2 challenges the addition on account of belated payment of employees contribution of PF and ESI of Rs. 8,61,45,863/-. We find that the disallowance on account of belated remittance of employees contribution of PF and ESI of Rs. 8,61,45,863/- was made vide intimation issued u/s 143(1) and the same addition was repeated in the order made u/s 143(3) r.w.s. 144C(13) of the Act. If the assessee is aggrieved by the disallowance made under the intimation u/s 143(1), the assessee should have agitated the addition by availing the remedy available against the intimation u/s 143(1) of the Act. Therefore, this issue cannot be agitated in the appeal filed against the order u/s 143(3) r.w.s. 144C(13) of the Act. Thus, this gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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