9911796707
TMI Blog2012 (9) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is engaged in Information Technology enabled services and business support services to the parent company. Assessment for the year under appeal, was completed invoking the provisions relating to the Transfer Pricing, under S.143(3) of the Act read with S.144C of the Act, determining the income of the assessee at Rs.14.49 crores, as against returned income of Rs.8.29 crores. The assessing officer raised the demand of Rs.3,30,51,041 which includes tax component of Rs.1,97,86,736 and interest segment of Rs.1,32,74,305. 3. During the proceedings before us, learned counsel for the assessee filed a copy of the notice under S.226(3) dated 6.6.2012 regarding the attachment of the bank of account of the assessee with Oriental Bank of Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e concerned assessees have been determined in multiples of the returned incomes, stay of recovery of outstanding demand has been justified, which may be tabulated hereunder- Case relied upon Citation Assessed income as a multiple of returned income Taneja Developers & Infrastructure Ltd. V/s. ACIT of the Delhi High Court 222 CTR 521 -Delhi High Court 350 times of the returned income. Soul V/s. Dy. Commissioner of Income-tax of Delhi High Court 173 Taxman 468(Del) 74 times of the retuned income. Valvoline Cummins Ltd. V/s. Dy. Commissioner of Income-tax of Del. High Court (2008) 171 Taxman 241(Del) Eight times N.Rajan Nair V/s. ITO of Kerala High Court (1987)33Taxman 451(Ker) Several times (Assessed income of Rs.1,39,770 as ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the TPO/Assessing officer, DRT, etc. Regarding the net margins, learned counsel submitted that the assessing officer determined the assessable net margins at very high figures, without granting due adjustments to the assessee. 7. Referring to the financial balance of convenience in matters of payment of tax, the learned counsel filed a status report indicating available cash at page 1 of the paper-book, according to which as on 31st May, 2012,there is only an amount of Rs.36,94,528, on account of total cash available of Rs.10,73,31,886 as against cash requirement for the month of June of Rs.10,36,37,358. He submitted that any recovery of outstanding demand by the Department at this point of time, would seriously harm the smooth running of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thod, rejecting the comparables provided by the assessee, we find there is lack of transparency and the assessing officer failed to honour the set principles of natural justice. The assessing officer should have provided opportunity as to why the comparables relied upon by the assessee are not acceptable. We also find that the objections raised by the assessee before the lower authorities were not met by passing a speaking order. On these issues, the arguments made out by the learned counsel for the assessee cannot be dismissed outright. Considering the above aberrations, the assessment made has to fall under the high-pitched category, and in view of the guidelines provided by the CBDT, more particularly in para-2 of the circular referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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