9911796707
TMI Blog2021 (6) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... 'the Act') qua the assessment year 2011-12 on the grounds inter alia that :- "1. Whether in facts and circumstances of the case, the Ld. CIT(A) is justified in treating the appeal effect order as the final assessment order without appreciating the fact that neither any reference was made from this office for fresh computation of Ann's Length Price to the TPO nor did the Ld. TPO pass the final order which is to be passed u/s 92CA(3)? 2. Whether in facts and circumstances of the case, the Ld. CIT(A) is justified in treating the appeal effect order as the final assessment order without appreciating the fact that this case for the same A.Y. is sub-judice before the Hon'ble High Court. By the time, appeal is pending before the Hon&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before passing this order without appreciating the fact that Draft Assessment order u/s 144C is to be presented to the assessee company only before passing the final assessment order and not before giving of the appeal effect? 6. Whether in facts and circumstances of the case, the Ld. CIT(A) is justified in invalidating the order u/s 254/143(3) on the grounds that no Draft Assessment Order was presented to the assessee before passing this order without appreciating the fact that section 144C states that the draft assessment order is to be forwarded to the 'eligible assessee' and the explanation of the 'eligible assessee' given in this section itself states "any person in whose case the variation referred to in sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Final Assessment Order. None of these cases have talked about following the same procedure even before passing the appeal effect order." 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : The taxpayer is wholly owned subsidiary of Rolls Royce International Limited. The taxpayer operates through an office in India in order to provide commercial information services and market support services to Rolls Royce International Ltd. relating to Indian territory and neighbouring countries. The taxpayer filed its revised return of income for AY 2011-12 at an income of Rs. 38,22,94,149/-. The assessment was framed u/s 143 (3) read with section 144C of the Act by the AO by making Transfer Pricing (TP) additions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the comparables challenged by the taxpayer and verify and allow the risk adjustment sought for by the taxpayer. It is also not in dispute that till now, no order has been passed by the TPO in consonance with the order (supra) passed by the Tribunal rather an order dated 20.09.2016 is passed by the ld. TPO under the subject, "Order giving partial effect to the directions of Hon'ble ITAT in case of M/s. Rolls Royce India P. Ltd. AY 20111-12". 8. AO, thereafter while giving effect to the order dated 20.09.2016 passed by the TPO, framed the assessment at Rs. 40,97,57,996/-. 9. Ld. DR for the Revenue challenging the impugned order passed by the ld. CIT (A) contended that ld. CIT (A) has erred in treating the appeal effect order as the final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after verification the risk adjustment sought for by the taxpayer by partly allowing the appeal. In such eventualities, the only course available to the TPO was to reexamine the comparables by providing an opportunity of being heard to the taxpayer for benchmarking the international transactions viz. IBI Chematur Engineering & Consultancy Ltd., Mitcon Consultants & Engg. Services Ltd., Ashok Leyland Project Services Ltd. & HSCC (India) Ltd.. However, ld. TPO for the reasons best known to him evolved his own procedure by passing order dated 20.09.2016 under the subject : "Order giving partial effect to the directions of Hon'ble ITAT in case of M/s. Rolls Royce India P. Ltd. AY 2011-12" on the basis of which assessment order has been frame ..... X X X X Extracts X X X X X X X X Extracts X X X X
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