9911796707
TMI Blog2023 (9) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... , in case, AO has not asked for any clarification or conducted any inquiry during the remand proceeding, AO must record, as to why and under what circumstances, he did not conduct any inquiry relating to the manner of delivery of services or proof of employees visiting India for rendering such services, that too, without providing any opportunity to the assessee. DRP also directed the AO to pass a speaking order. On a reading of the final assessment order, more particularly, the observations of the AO in paragraphs 8 and 9, we are of the view that the AO has completely disregarded the specific directions of learned DRP and has passed the final assessment order in a perfunctory and cavalier manner. Thus, in our view, the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As could be seen from the facts on record, the assessee is a non-resident corporate entity, incorporated in Switzerland and a tax resident of Switzerland. In the previous year relevant to the assessment year under dispute, the assessee had received an amount of Rs. 58,85,733/- from its Indian Associated Enterprise (AE) and a further amount of Rs. 16,21,275/- from Mumbai Airport Lounge Services Pvt. Ltd. It is a fact on record that for the year under consideration, the assessee had originally not filed any return of income. Subsequently, the assessment was reopened under section 147 of the Act and in response to the notice issued under section 148, the assessee filed its return of income on 24.11.2021, declaring income of Rs. 3,10,35,460/- a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion made in the draft assessment order. 5. Having considered rival submissions, we find, though, in course of assessment proceeding, the assessee, for whatever may be the reason, could not furnish certain documentary evidences, such as, TRC, underlying agreement with Indian parties, no PE Certificate etc., however, before learned DRP, the assessee did furnish the aforesaid evidences by way of additional evidence. 6. After admitting the additional evidences, learned DRP forwarded them to the Assessing Officer for factual verification and report. It is observed, in the remand report, the Assessing Officer has not only objected to the admission of additional evidences, but also questioned the authority of learned DRP in admitting additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ences, the Assessing Officer cannot challenge the authority of learned DRP in admitting the additional evidences. Pertinently, while rejecting the objections of the Assessing Officer on the issue of admission of additional evidences, learned DRP has given the following directions to the Assessing Officer on merits: 3.21 The Panel, accordingly, directs the AO to verify from his records if he had asked for any further details/clarification from the assessee during the remand proceedings, which the assessee did not furnish. If this is so, this addition would be retained. If the AO did not ask for any clarification or conduct any enquiry during the remand proceedings, the Panel directs the AO, while passing the final order, must record as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances, he did not conduct any inquiry relating to the manner of delivery of services or proof of employees visiting India for rendering such services, that too, without providing any opportunity to the assessee. Learned DRP also directed the Assessing Officer to pass a speaking order. However, on a reading of the final assessment order, more particularly, the observations of the Assessing Officer in paragraphs 8 and 9, we are of the view that the Assessing Officer has completely disregarded the specific directions of learned DRP and has passed the final assessment order in a perfunctory and cavalier manner. Thus, in our view, the Assessing Officer has disobeyed the statutory mandate. 9. In view of the aforesaid, we are inclined ..... X X X X Extracts X X X X X X X X Extracts X X X X
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