M/S STRING INFORMATION SERVICES PVT LTD., CHENNAI V. ACIT,CC6(2), CHENNAI

ITTPA 34/CHNY/2021

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The case involves String Information Services Pvt. Ltd., which appealed to the Income Tax Appellate Tribunal, Chennai, against the order of the Dispute Resolution Panel (DRP) for the assessment year 2016-17. The appeal was initially filed without a final assessment order, as the assessee claimed that no such order was available on the Income Tax Portal or with them. The DRP had earlier issued directions which were not followed by the AO in passing a final assessment order. The tribunal, after hearing the arguments and considering the absence of a final assessment order, dismissed the appeal as infructuous, granting liberty to both parties to recall the order if a final assessment order is later found or issued.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 134908 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 22-11-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 22-11-2022
• Assessment Year: 2016-2017
• Appeal Filed On: 20-06-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Transfer pricing
• Section: 143(3); 143(2)

Judgement Text

आयकर अपीलीय अिधकरण, ‘डी’ ᭠यायपीठ,चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ᮰ी महावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मनोज कुमार अᮕवाल, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकरअपीलसं./IT(TP)A No.: 34/CHNY/2021 िनधाᭅरण वषᭅ/Assessment Year: 2016 - 17 String Information Services Pvt. Ltd., No.810, 5 th Floor, GR Complex, Anna Salai, Nandanam, Chennai – 600 035. PAN: AAJCS 8514P vs. The ACIT, Corporate Circle 6(2), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri B. Ramakrishnan, CA ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Dr. S.Palanikumar,CIT स ु नवाई कȧ तारȣख/Date of Hearing : 23.11.2022 घोषणा कȧ तारȣख/Date of Pronouncement : 23.11.2022 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: At the outset, the ld.AR for the assessee Shri B. Ramakrishnan, CA pointed out that this appeal is not accompanied by the final assessment order for the reason that there is no final assessment order passed by the AO in consequence to the order passed by DRP-II, Bangalore for the assessment year 2016-17 u/s.144C r.w.s. 143(3) r.w.s. 92CA(3) of the Income Tax Act, 1961 2 IT(TP)A No.34/Chny/2021 (hereinafter the ‘Act’) dated 22.02.2021. He made this statement at bar that assessee has made enquiries from the Department and has received information verbally that no final assessment order in consequence to DRP’s direction is passed. 2. When this was pointed out to ld.CIT-DR, Dr. S. Palanikumar, he refused to accept this position but could not state in categorical term that the final assessment order is passed or not. The Revenue was pointed out from the first hearing that was on 19.05.2022 and even the defect was pointed out to the assessee vide defect notice dated 08.03.2022. The assessee through its counsel replied vide letter dated 27.09.2022, that the final assessment order is not available on the Income-tax portal or it has never been received by the assessee. The relevant text of the letter reads as under:- “The appellant had filed its return of income for AY 2016-17 declaring an income of Rs.1,42,41,315/- on 23.09.2016. The case was selected for Limited Scrutiny' and notice u/s 143(2) of the Act was issued on 01.08.2017. Thereafter, the case was referred to Transfer Pricing Officer and TPO had passed an Order u/s 92CA(3) of the Act on 31.10.2019 by proposing an upward adjustment of Rs.1,59,57, 446 in respect of transaction relating to provision of Business Support Services. Subsequently, the Assessing Officer had passed a Draft Assessment Order u/s 143(3) of the Act dated 26.11.2019. Being aggrieved by the same, the appellant had filed its objections before Dispute Resolution Panel on 24.12.2019. The DRP passed an Order u/s 144C(5) of the Act dated 22.02.2021 rejecting the objections of the appellant. 3 IT(TP)A No.34/Chny/2021 Being aggrieved by the above, the appellant had preferred an appeal before the Hon'ble Income Tax Appellate Tribunal on 18.06.2021 without being in possession of the Final Assessment Order. Thus, the registry had issued a Defect Notice dated 08.03.2022 stating that the details in Col. 3(b) and (c) are not filled by the appellant. In this regard, it is submitted that the appellant is unable to rectify the defect since the impugned Order is neither available on the Income Tax Portal nor it is available with the appellant. Subsequently, the appellant had filed a letter before the Assessing Officer to provide the copy of the Final Assessment Order passed pursuant to the directions issued by the DRP. The Assessing Officer had orally stated that the requested order copy is not available with him. Copy of the letter filed with the Assessing Officer is enclosed herein. Under these circumstances, the appellant is unable to rectify the defect raised in appeal by the registry.” 3. Since the ld.CIT-DR has refused to take responsibility, in the interest of justice to the Revenue we dismiss this appeal filed by the assessee as infructuous in the absence of final assessment order passed by the AO passed in consequence to DRP directions. As the assessee cannot be aggrieved with DRP because there is no outstanding demand or demand cannot be raised by the Revenue without the final assessment order. However, as requested by ld.CIT-DR, we give liberty to both the sides to get this order re- called in case, either Revenue or the assessee comes across passing of any final assessment order qua the directions of DRP dated 4 IT(TP)A No.34/Chny/2021 22.02.2021. In term of the above, this appeal of the assessee is dismissed as infructuous. 4. In the result, the appeal filed by the assessee is dismissed as infructuous. Order pronounced in the open court on 23 rd November, 2022 at Chennai. Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य/ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 23 rd November, 2022 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ (अपील)/CIT(A) 4. आयकर आयुᲦ /CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF.