Hanning Motors India Pvt. Ltd. Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that CIT(A)-NFAC has dismissed the appeal without rendering any findings on the merits of the case, which is against the principles of natural justice. Accordingly, order of CIT(A)-NFAC is set aside, and matter is restored to the file of CIT(A)-TP for fresh adjudication on merits.
Facts- The assessee is engaged in the manufacture and sale of synchronous drain pumps used in washing machines and dishwashers. The case was selected for Complete Scrutiny under CASS, and notices were issued under Sections 143(2) and 142(1) of the Act. Since the assessee had international transactions with Associated Enterprises (AEs), a reference was made to the TPO under Section 92CA of the Act. The TPO proposed a TP adjustment of Rs.6,92,75,149/-, which was incorporated into the final assessment order passed by the AO u/s.143(3) r.w.s. 144C(3) of the Act.
CIT(A)-NFAC, instead of adjudicating the grounds on merits, summarily dismissed the appeal without giving any findings on the various issues raised. Being aggrieved, the present appeal is filed.
Conclusion- Held that the CIT(A)-NFAC has dismissed the appeal without rendering any findings on the merits of the case, which is against the principles of natural justice. Since the core issue in the appeal pertains to Transfer Pricing adjustments, the appeal ought to have been adjudicated by CIT(A)-TP as submitted by the DR. The failure of CIT(A)-NFAC to decide the issues on merits has resulted in an improper disposal of the appeal, necessitating a remand. In view of the above, and considering the fair concession made by the DR, we are of the opinion that the matter should be restored to the file of the CIT(A)-TP or CIT(A) of any other appropriate charge for fresh adjudication. The concerned CIT(A) is directed to examine all the grounds of appeal raised by the assessee and adjudicate the issues on merits after granting a reasonable opportunity of being heard to the assessee. Therefore, the order of CIT(A)-NFAC is set aside, and the matter is restored to the file of CIT(A)-TP for fresh adjudication on merits.
