2015 (8) TMI 1394 - HC - Income Tax

The following question is framed for determination Whether the ITAT has erred in deleting the disallowances of 1143, 32, 82, 361 made by Assessing Officer under section 40(a)(i) for non deduction of TDS on business profits?

Summary

Issues:
1. Condonation of delay in re-filing the appeal.
2. Disallowance of business profits under Section 40(a)(i) for non-deduction of TDS.
3. Remand of Transfer Pricing issue to the TPO.

Analysis:
1. The court condoned the delay of 47 days in re-filing the appeal after considering the reasons stated in the application, thereby disposing of the application.

2. The first issue pertains to the deletion of disallowances of a significant amount made by the Assessing Officer under Section 40(a)(i) for non-deduction of TDS on business profits. The court framed a question for determination based on this issue, considering a similar question framed for the earlier assessment year involving the same assessee. The appeal was admitted for further deliberation on this matter.

3. The second issue raised by the Revenue concerns the ITAT's decision to remand the Transfer Pricing issue to the Transfer Pricing Officer (TPO) for fresh adjudication. The ITAT's action was based on a previous order for a different assessment year. After hearing arguments from both parties, the court concluded that the ITAT did not err in sending the matter back to the TPO for reevaluation. The court emphasized that all contentions on the Transfer Pricing issue could be presented before the TPO during the fresh adjudication process.

This detailed analysis of the judgment covers the issues of condonation of delay, disallowance of business profits for non-deduction of TDS, and the remand of the Transfer Pricing matter to the TPO, providing a comprehensive overview of the court's decision and reasoning.