Sanghi Industries Limited Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad held that for the invocation of section 92BA of the Income Tax Act, there is no necessity for the assessee for opting/ claiming the deduction U/s. 80IA of the Income Tax Act. Accordingly, appeal of the assessee dismissed.
Facts- The assessee-company is engaged in manufacturing of Clinker and Ordinary Portland Cement. During the AY under consideration, the assessee has furnished a report in Form No. 3CEB as per the provisions of section 92E of the Act. Thereafter, the case was referred to the Transfer Pricing Officer on 25/10/2019 for determining the Arm’s Length Price. TPO determined the adjustment to be made to the income of the assessee on account of the Specified Domestic Transactions entered into by the assessee at Rs. 154,38,00,527/-. Thus, TPO passed the order U/s 92CA(3) of the Act, dated 30/01/2021.
Accordingly, AO passed the Draft Order U/s. 143(3) r.w.s 144C of the Act, dated 10/04/2021 and determined the total income of the assessee at Rs. 104,99,80,729/- which includes (i) adjustment towards Specified Domestic Transactions Rs. 154,38,00,527/- and (ii) Disallowance of CSR expenses of Rs. 1,42,97,133/- against the returned income of Rs. 50,81,16,931/-.
Thereafter, AO passed the final assessment order U/s. 143(3) r.w.s 144C(13) r.w.s 144B of the Act, dated 03/02/2022 and assessed the total income at Rs. 104,99,80,729/-. While passing the assessment order, AO also initiated the penalty proceedings U/s. 270A of the Act for underreporting of income. Feeling aggrieved by the directions of the Ld. DRP / Assessment Order, the assessee preferred the present appeal before the Tribunal.
