Dresser-Rand India Pvt. Ltd. Vs ACIT (ITAT Mumbai)
Rejection of objection by DRP in summary manner unjustified hence matter remitted back: ITAT Mumbai
ITAT Mumbai held that it is not open to Dispute Resolution Panel (DRP) to reject the objections of the assessee in a summary manner without properly analyzing the objections of the assessee and dealing with evidences filed by the assessee. Thus, matter remitted back to file of AO for fresh adjudication.
Facts- Vide the present appeal, the appellant has contested that the Transfer Pricing Officer (TOP); AO and DRP erred in confirming the additions on cost contribution (Rs.10,55,00,000) and field supervision charges (Rs.4,70,009) under section 92CA(3) of the Act by disregarding the documentation maintained u/s. 92D of the Act read with Rule 10D of the Income tax Rules, 1962(the rules) and not appreciating the factual details, submissions and various documentary evidences demonstrating benefits to the appellant under the cost contribution agreement.
Conclusion- Held that it is not open to Dispute Resolution Panel to reject the objections of the assessee in a summary manner without properly analyzing the objections of the assessee and dealing with evidences filed by the assessee. In this view of the matter, we deem it fit and proper to remit the matter to the file of the Assessing Officer for fresh adjudication on the question, of services having been actually rendered, in the light of evidences filed by the assessee.
