ITAT condoned delay as assessee learned of assessment only after bank account attachment, emphasizing the violation of natural justice. Key takeaway: Ex-parte orders require proper notice before dismissal.
The appeal was allowed as the notice under section 148 was sanctioned by an authority not competent under law. All proceedings following the invalid notice were held void-ab-initio. The ruling highlights the necessity of proper sanction for reopening assessments beyond three years.
Court held that an income tax assessment issued after the assessee’s death is null and void, emphasizing the legal heir’s right to contest the order.
The Delhi ITAT rejected the TPO’s proposed uplift and held that the interest rate charged on the loan to the Jordan AE aligned with the Jordan Central Bank rate. The ALP at 3.55% was accepted, deleting the proposed TP adjustment.
ITAT condoned a 23-day delay and quashed the ex-parte order of NFAC, sending the appeal back for fresh adjudication. Appeals must be decided on merits even if delayed, prioritizing fairness.
The Court allowed the assessee one more opportunity to contest an ex-parte addition under Section 68, emphasizing the need for fair hearing and natural justice.
After examining the step-wise rework operations, the Tribunal found no specialized skill or scientific process involved. It upheld the deletion of the ₹4.81-crore disallowance since the payments did not attract TDS under FTS provisions.
ITAT Delhi held that reimbursements for seconded employees’ salaries cannot be taxed as technical services, as a genuine employer-employee relationship existed with Indian entities. The ruling confirms that taxed salary payments cannot be recharacterized as FTS.
ITAT held that the appellate order passed without hearing the assessee violated natural justice. The case was remanded with directions to provide proper opportunities.
ITAT Delhi held that DRP is a quasi-judicial authority and is required to issue directions on all the objections raised by assessee. Failure to adjudicate certain components results into violation of principles of natural justice. Accordingly, matter set aside to file of DRP.
