9911796707
TMI Blog2023 (6) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... to the file of Assessing Officer for his consideration. The Assessing Officer is directed to consider the claim of working capital adjustment made by the assessee in the additional ground of appeal. Disallowance of sales promotion expenditure u/s. 40(a)(ia) - HELD THAT:- We find that similar ground was raised by the assessee in Assessment Year 2016-17[ 2023 (2) TMI 190 - ITAT MUMBAI] where held as in view of this second proviso, we direct the ld. AO to make factual verification as to whether the recipients had duly disclosed the subject mentioned receipts in their returns of income. The assessee is directed to furnish the necessary details in this regard in the prescribed form. Assessee appeal is allowed for statistical purpose X X X X Extracts X X X X X X X X Extracts X X X X ..... t(SSP) scheme to schools for specified education purpose. The assessee had deducted TDS on such payments made. Further, the assessee had also created a provision for SSP Rs. 78,68,411/-. The Assessing Officer vide impugned order disallowed the provision made u/s. 40(a)(ia) of the Act . 3.1 The ld. Authorized Representative of the assessee in respect of other ground of appeal submitted that the assessee had entered into various international transactions during the period relevant to assessment year under appeal. To benchmark the transactions with its Associated Enterprises(AE), the assessee adopted Transactional Net Margin Method (TNMM) as the most appropriate method. The Transfer Pricing Officer (TPO) did not accept the comparables select ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, he submitted that identical ground was considered by the Tribunal in assessee's own case for assessment year 2016-17 in ITA No.2186/Mum/2021, decided on 13/12/2022. The ground may be decided in similar terms. 4. Per contra, Shri Soumendu Kumar Dash representing the Department vehemently opposed the admission of additional ground of appeal raised by the assessee. The ld. Departmental Representative submitted that assessee had never claimed working capital adjustment before the TPO or DRP. Now, at this later stage the assessee cannot raise a fresh ground. The ld. Departmental Representative prayed for upholding the assessment order and dismissing the appeal of assessee. 5. We have heard the submissions made by rival sides and have ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the Tribunal in ITA No.2186/Mum/2021 (supra). The Co-ordinate Bench after examining the issue threadbare restored the issue back to the file of Assessing Officer with following directions: "9. Having extensively heard both the parties, we have no hesitation in drawing the following conclusions:- (a) xxxxxxxx xxxxxxxx f) Hence it could be safely concluded that the assessee is bound to deduct tax at source, failure of which , would be invited with disallowance u/s 40(a)(ia) of the Act. However, we find lot of force in the alternative argument advanced by the ld.AR before us that in view of second proviso to section 40(a)(ia) of the Act, since the payees/recipients had disclosed the said receipts in their returns of income, no di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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