NetCracker Technology Solutions (India) Private Limited Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad held that the final assessment order passed by the A.O. u/s. 143(3) r.w.s. 144C(13) r.w.s. 144B dated 06.06.2024 beyond the limitation prescribed under Section 153(4) of the Income-tax Act, 1961 is liable to be quashed. Accordingly, the appeal is allowed.
Facts- During TP proceeding, TP made adjustment of Rs. 4,56,91,941/- in respect of interest on trade receivables from AE by applying SBI short-term deposit rate and also after allowing a credit period of 60 days, vide his order dated 31.03.2023 passed u/s. 92CA(3) of the Income-tax Act, 1961. Thereafter, the A.O. has passed a draft assessment order and determined the total income at Rs. 141,78,15,746/- by making addition towards TP adjustment suggested by the Ld. TPO and also addition towards disallowance of CSR expenditure claimed as deduction u/s. 80G of the Act for Rs. 20,97,705/-.
DRP rejected the objections filed by the assessee and sustained additions made by the A.O. towards TP adjustment and also disallowance of donation u/s. 80G of the Act. In pursuant to the directions of DRP issued u/s. 144C(5) of the Act, dated 29.05.2024, the A.O. has passed final assessment order u/s. 143(3) r.w.s. 144C(13) r.w.s. 144B of the Income-tax Act, 1961 on 06.06.2024 and determined the total income at Rs. 141,78,15,746/- and made additions towards TP adjustment in respect of delayed receivables from AE and disallowance of donations under Section 80G towards CSR expenditure. Aggrieved by the final assessment order, the assessee is now in appeal before us.
