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TMI Blog2023 (8) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... earned assessing officer against the order of National faceless appeal Centre, Delhi (the learned CIT - A) dated 7/3/2023 for a by 2014-15 wherein the appeal filed against the assessment order passed under section 143 (3) dated 28/12/2016 passed by The Deputy Commissioner Of Income Tax 12 (1) (2), Mumbai was partly allowed. 03. The learned assessing officer has raised following grounds of appeal:- "whether on the facts and in the circumstances of the case and in the law, the learned CIT (A) was justified in deleting the addition of Rs. 64,087,601/- being 20% of expenses incurred by the assessee for services rendered to M/s Cigna TTK during the year whether on the facts and in the circumstances of the case and in law, the learned CIT (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neutral and there is no tax impact. The learned AO noted that for assessment year 2013 - 14 the facts were similar and then assessing officer went on to charge 20% mark-up on this amount received from that company. The learned AO questioned the assessee that why the same addition should not be repeated in the present assessment year also. The assessee gave the similar explanation. This was rejected by the learned assessing officer. The AO also questioned whether assessee is providing the same services to that entity to develop the infrastructure. The AO questioned that why an entity will provided services without charging any mark-up on the services rendered by it. The learned AO noted that it is not feasible for assessee to provide same se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices provided to its sister concern. Accordingly as per the last year where the learned assessing officer charged the mark-up at the rate of 20% was considered to be appropriate. Therefore the profit embedded in the development of infrastructure for the sister concern required to be considered as income of the assessee. The learned AO noted that assessee has incurred expenditure of Rs. 324,038,007/- for services rendered to sister concern during the year and therefore the service charges the rate of 20% of the above amount amounting to Rs. 64,087,601/- was treated as income of the assessee and added to the total income. There was also disallowance of late payment of provident fund of Rs. 1,188,808/-. Accordingly assessment order under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat identical issue arose in case of the assessee for assessment year 2013- 2014 wherein the coordinate bench has decided the issue in favour of the assessee. He referred to the copy of the decision placed at page number 215 - 226 of the paper book. The learned authorised representative also referred to the submission filed before the learned assessing officer placed at page number 1 - 86 and also the submission before CIT (A) at serial number 87 - 214 of the paper book. Thus he claimed that the issue is squarely covered in favour of the assessee and there is no change in the facts and circumstances of the case. The learned CIT - A has followed the decision of the coordinate bench in assessee's own case for earlier years and therefore same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee must be deemed to have made a profit amounting to the difference between the market price of the shares and their book value. The Hon'ble Supreme Court held that when one trader transfers his goods to another trader at a price less than the market price, the taxing authority cannot take into consideration, the market price of those goods, ignoring the real price fetched. Unless the officer was able to come to the conclusion, on the material before him, that the assessee had really made profits in the transaction, it was not permissible for him to add any fictional income to the assessee's return. In the absence of any evidence to show either that the sales were sham transactions or that the market prices were in fact paid by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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