9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (2) TMI 1183 - AT - Income TaxValidity of order passed by the TPO u/s 92CA(3) - Computation of period of limitation - HELD THAT - As relying on Pfizer Healthcare India Pvt. Ltd. 2021 (2) TMI 1152 - MADRAS HIGH COURT we find that the order of TPO was passed u/s 92CA (3) on 30.01.2013 is clearly barred by limitation as the same could have been passed on or before 29.01.2013. Thus, the TPO order dated 30.01.2013 is quashed as barred by limitation. Whether once the TP order is held to be nullity or quashed on the ground of barred by limitation, then could AO have passed the draft assessment order treating it to be as eligible assessee? - As we hold that the impugned order dated 26.02.2014 is clearly barred by limitation, because once the assessee is not eligible assessee, therefore no draft assessment order could have been passed and finally the assessment order should have been passed on or before 31st March 2013 i.e. within the period limitation passed u/s 153. Thus, the impugned final assessment orders dated 26.02.2014 is barred by limitation and is hereby quashed.
Issues Involved:
1. Imputing interest on delayed receipt from debtors 2. Imputing interest on the share application money paid to subsidiaries 3. Imputing guarantee commission on corporate guarantees provided to Associated Enterprises 4. Disallowance of deduction claimed under Section 10B of the Income Tax Act, 1961 5. Non-granting of incremental deduction under Section 10B due to disallowance under Section 43B 6. Weighted deduction under Section 35(2AB) granted on net expenditure 7. Disallowance of rental expenditure under Section 40A(2)(b) 8. Disallowance of FCCB premium 9. Disallowance of FCCB issue expenses 10. Disallowance under Section 14A 11. Income from assignment of commercial contracts taxed as business profits 12. Adjustment to 'book profits' under Section 115JB 13. Levy of interest under Section 234B 14. Levy of interest under Section 234D 15. Short credit for TDS 16. Non-grant of credit for tax paid on self-assessment Issue-wise Detailed Analysis: 1. Imputing Interest on Delayed Receipt from Debtors: The Tribunal noted the adjustment made by the Transfer Pricing Officer (TPO) for imputing interest on delayed export receivables. The TPO's order dated 30.01.2013 included an adjustment of Rs. 1,40,01,089/- for this issue. 2. Imputing Interest on Share Application Money Paid to Subsidiaries: The TPO also made an adjustment for imputing interest on share application money paid to subsidiaries, amounting to Rs. 61,00,91,759/-. 3. Imputing Guarantee Commission on Corporate Guarantees: An adjustment of Rs. 3,38,05,864/- was made by the TPO for imputing guarantee commission on corporate guarantees provided by the appellant to its Associated Enterprises. 4. Disallowance of Deduction Claimed Under Section 10B: The assessee challenged the disallowance of the deduction claimed under Section 10B of the Income Tax Act, 1961. The Tribunal noted the corporate tax grounds raised by the assessee. 5. Non-granting of Incremental Deduction Under Section 10B Due to Disallowance Under Section 43B: The Tribunal addressed the issue of non-granting of incremental deduction under Section 10B due to disallowance under Section 43B. 6. Weighted Deduction Under Section 35(2AB) Granted on Net Expenditure: The assessee raised the issue of weighted deduction under Section 35(2AB) being granted on net expenditure incurred. 7. Disallowance of Rental Expenditure Under Section 40A(2)(b): The Tribunal considered the disallowance of rental expenditure under Section 40A(2)(b). 8. Disallowance of FCCB Premium: The issue of disallowance of FCCB premium was also raised by the assessee. 9. Disallowance of FCCB Issue Expenses: The Tribunal noted the disallowance of FCCB issue expenses. 10. Disallowance Under Section 14A: The assessee challenged the disallowance under Section 14A of the Act. 11. Income from Assignment of Commercial Contracts Taxed as Business Profits: The Tribunal addressed the issue of income received on the assignment of commercial contracts being taxed as business profits. 12. Adjustment to 'Book Profits' Under Section 115JB: The Tribunal considered the adjustment made to 'book profits' computed under Section 115JB, including: - Considering the net profit amount as 'Profit before Tax and Exceptional Items' instead of 'Profit before Tax' - Not reducing the amount of unabsorbed depreciation from the book profits - Increasing the book profits by the amount of disallowance made under Section 14A. 13. Levy of Interest Under Section 234B: The assessee raised the issue of the levy of interest under Section 234B of the Act. 14. Levy of Interest Under Section 234D: The Tribunal addressed the issue of the levy of interest under Section 234D. 15. Short Credit for TDS: The assessee challenged the short credit for TDS considered by Rs. 45,06,609/-. 16. Non-grant of Credit for Tax Paid on Self-assessment: The Tribunal noted the issue of non-grant of credit for tax paid on self-assessment. Additional Grounds Raised: The assessee raised additional grounds challenging the validity and limitation of the transfer pricing order dated 30th January 2013 and the final assessment order dated 26th February 2014. The Tribunal admitted these grounds and adjudicated them. Chronology of Events: The Tribunal provided a detailed chronology of events to appreciate the additional grounds raised by the assessee, including the relevant dates and periods for the assessment year involved. Legal Arguments and Decisions: The Tribunal considered the legal arguments presented by both parties. The assessee relied on the decision of the Hon'ble Madras High Court in the case of Pfizer Healthcare India Pvt. Ltd. vs. JCIT, which held that the TPO order was barred by limitation. The Tribunal also referred to other decisions supporting the assessee's contention. Final Decision: The Tribunal concluded that the transfer pricing order dated 30th January 2013 was barred by limitation and quashed it. Consequently, the final assessment order dated 26th February 2014 was also held to be barred by limitation and quashed. The Tribunal relied on the decision of the Hon'ble Madras High Court and other relevant judgments to support its conclusion. Orders Pronounced: The Tribunal pronounced the orders in the open court on 28th February 2023, quashing the transfer pricing order and the final assessment order due to being barred by limitation.
|
