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TMI Blog2020 (4) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... he year in which the assessee has received the income and has offered the same to tax. Grant of TDS credit and grant of interest u/s 244A - assessee pointed that rectification petition has already been filed before the Assessing Officer and the same is still pending for the disposal - HELD THAT:- AO is directed to dispose of the rectification petition filed by the assessee expeditiously, preferably within a period of three months from the date of receipt of this order. - ITA NO.2239/MUM/2017 - - - Dated:- 18-2-2020 - Shri Vikas Awasthy, Judicial Member And Shri Manoj Kumar Aggarwal, Accountant Member For the Appellant : Shri M.P.Lohia For the Respondent : Shri Uodal Raj Singh ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the assessment order dated 31/01/2017 passed under section 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961( in short the Act ). 2. Shri M.P.Lohia, appearing on behalf of the assessee submitted that the assessee is engaged in providing research based consultancy services in brand building. The assessee is a subsidiary of Russell Square Holding BV, Netherlands. The ld. Authorized Representative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of section 199 of the Act, the TDS credited is to be allowed to the assessee in the year in which income is offered to tax. Whereas, the Assessing Officer in the present case has allowed TDS in the year in which it has been deducted. This has resulted in mismatch of TDS claimed by the assessee and TDS claim TDS reflected in Form 26AS. The ld. Authorized Representative for the assessee submitted that TDS deducted and reflected in Form 26AS also includes receipts which are offered to tax by the assessee in the subsequent assessment years. The assessee has offered some of the receipts in subsequent assessment year as they have been actually received in later financial year. 4. In respect of ground No.15 16 relating to short grant of TDS credit and interest under section 244A of the Act, respectively, the ld. Authorized Representative for the assessee submitted that assessee has filed rectification petition before the Assessing Officer. The same is still pending for the final disposal. The ld. Authorized Representative for the assessee prayed that direction may be given to Assessing Officer to dispose of the application in time bound manner. 5. Shri Uodal Raj Singh, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue in appeal to the Tribunal in ITA No.932/Mum/2016(supra). The Tribunal deleted the addition by holding as under:- 8. Against the above assessee is in appeal before us. We have heard both the counsel and perused the records. Learned counsel of the assessee submitted that the Transfer Pricing officer has determined the arms length price of the international transaction in this case to be nil, without applying any method whatsoever. He submitted that assessee has submitted voluminous document showing the services however they have been summarily dismissed on the ground that the benefit accruing to the assessee has not been established. The learned counsel of the assessee submitted that this approach is not at all sustainable. He referred to the decision of honourable jurisdictional High Court in this regard for the proposition that it is not for the Transfer Pricing officer to apply the benefit test under section 37(1) of the I.T. Act, but the same is for the assessing officer. We find that the ratio from the above honourable during High Court decision is quite clear. Hence admittedly the Transfer Pricing officer has exceeded his jurisdiction. Hence the Transfer Pricing off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer in course of assessment proceedings finds that the assessee has entered into international transactions with its AE, he may with the previous approval of the authority concerned make a reference to the Transfer Pricing Officer under section 92CA(1) of the Act to compute the arm's length price of the international transaction by applying any of the methods prescribed under section 92C of the Act. After receiving such a reference from the Assessing Officer, the Transfer Pricing Officer is required to determine the arm's length price of the international transaction as per the provisions contained under section 92C and 92CA of the Act read with relevant rules. Thus, as could be seen from the reading of the aforesaid provisions, the duty of the Transfer Pricing Officer is restricted only to the determination of arm's length price of an international transaction between two related parties by applying any of the methods prescribed under section 92C of the Act r/w rule 10B of the Rules. Thus, there is no provision under the Act empowering the Transfer Pricing Officer to determine the arm's length price on estimation basis (which in this case is nil), that to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in assessee s own case in assessment year 2011-12, we see no reason to take a different view. Respectfully following the decision of Co-ordinate Bench of the Tribunal in assessee s own case, we allow ground No.4 to 9 of the appeal in similar terms. 9. In ground No.10 to 13 of the appeal, assessee has assailed disallowance of TDS credit. During the assessment proceedings, the Assessing Officer asked the assessee to reconcile the payments received and the TDS reflected in Form 26AS. The assessee furnished details of the transactions and explained that difference in revenue recognized in the books of account and the TDS reflected in Form 26AS is on account of difference between the period of recognition of profit and the amount received. The ld.Authorized Representative of the assessee placed reliance on the provisions of section 199 to contend that the TDS credit be given to the assessee in the year in which the income is offered to tax. The ld.Authorized Representative of the assessee pointed that TDS reflected in Form 26AS in respect of certain payments has been offered to tax by the assessee in subsequent assessment years as the payment was actually received by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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