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TMI Blog2020 (10) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... cept the submission of the learned Counsel further on the ground that merely because the order of the DRP may be binding on the Assessing Officer, against whose order, the appeal can be filed only before the learned Tribunal, a shortcut could be provided to the Assessee in such cases to invoke the Writ Jurisdiction, which itself has three tiers of remedies; before the High Court, two tiers, viz., the learned Single Judge dealing with the Writ Petition and the intra-Court Writ Appeal before Division Bench and then if the matter is taken up to the Hon'ble Supreme Court by way of Special Leave Petition under Article 136 of the Constitution of India. His digression is self defeating and defeats the very purpose of quicker assessments sought to be achieved in the special law relating to international transactions envisaged in the Chapter X of the Income Tax Act provided for assessment of international transactions, so that an image of balanced approach by IT authorities can be projected on the international horizons. Many other developed countries provide for such quicker management of tax dispute resolution. In view of the undertaking given by the Respondents in paragraph 3 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TPO with regard to computing quantum of adjustment. The finding recorded by the DRP in this regard is contained in paragraph 18.1, which is as follows:- The argument of the assessee could have some force if the data in relation to profits earned by assessee in relation to costs pertaining to international transactions were available. However, this is not so. The assessee is selling a product, for the manufacture of which, part purchases are from AEs and remaining from the non-AEs. When the product is sold only overall profit margin is recorded without any data as to what would be the profit in relation to purchases from AE. But it cannot be presumed that the profit percentage earned in relation to costs related to international transactions as well as non-international transaction was same. So it is always possible that the margin of profit on costs related to international transaction is not the same as profit margin on costs related to non-international transactions but ultimately overall profit margin is being shown. 17. After recording the above finding, the DRP has adopted a hypothesis with regard to an assessee having international transactions and how ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent to give effect to the directions issued by the DRP, dated 13.12.2016, by passing an assessment order, after which, it is open to the petitioner to challenge the same before the Tribunal. All contentions are left open. No costs. Consequently, connected Miscellaneous Petition is closed. 4. The learned Senior Counsel Mr.Satish Parasaran was at pains to emphasize before us that the learned DRP in its impugned order dated 13.12.2016 has disregarded the judgments of the other High Courts on the question that TP adjustments can be made only with regard to international transactions which had taken place with the Associated Enterprises and not the domestic transactions and therefore, the international transactions with the Associated Enterprises cannot be allowed to bear the brunt of the profit adjustments in the domestic transactions and thus, this question of law has wrongly been decided by the learned DRP, which order is however binding on the Assessing Officer as per the provisions of Section 144C(5) of the Act and therefore on the said question of law alone, it was argued before the learned Single Judge as well as before us, that this Court may interfere with the impugned o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case. 7. Accordingly, the learned Counsel for the Revenue has submitted that the apprehension of the Appellant/Assessee in the present case that there will be a mix up of domestic transactions and TP Adjustments can be made only for international transaction is unfounded, as the Department is very clear in its approach and TP Adjustments which can be made only to the international transactions covered by the definition given in Section 92B in the Chapter X, by the Revenue Authorities. Therefore she submitted that the Assessee may approach the learned Assessing Officer and if it is aggrieved by the order passed by the Assessing Officer, they have a further remedy of appeal before the learned Tribunal and then further appeal on substantial questions of law before the High Court under Section 260A of the Act. 8. Having heard the learned Counsel for the parties, we are of the opinion that the present Writ Appeal deserves to be dismissed as there is no merit. We cannot appreciate the arguments of the learned Senior Counsel for the Assessee that on the question of law, the DRP has disregarded the case laws of other High Courts. A mere discussion of such case laws but not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer for which he is bound. We are not inclined to go into the exercise of facts and figures at this stage at all, lest it affects the lower authorities in any manner and prejudices the case of either the Assessee or the Revenue. A regular appeal on substantial question of law, under Section 260A of the Act is provided in the Income Tax Act, 1961 and on those questions of law, if at all they would arise from the order of the learned Tribunal, the Assessee has a remedy even before this Court, and later before the Hon'ble Supreme Court on regular appeal. 12. This stream lined procedure, provided under the Act should not normally be allowed to be breached in such cases where a deeper analysis of facts has to be done by the authorities under the Act up to the Tribunal and a factual exercise has to be undertaken by them with regard to comparables, TP Adjustments and methods for making TP adjustments as prescribed in Rule 10B and Section 92C of the Act. Prematurely pronouncing on these issues, definitely curtails the discretion of the Assessing Authorities in this regard and as we have said above, it is a self defeating exercise, which the High Court in its Wr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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