Case Law Details
Intrado EC India Private Ltd Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that orders passed u/s 92CA of the Income Tax Act without mentioning of Document Identification Number (DIN) is invalid and deemed to have been never issued. Hence, TP adjustments made through the order is also invalid.
Facts- The assessee is engaged in the business of providing reselling, conferences and collaboration services, web casting and other related support services. The assessee filed the ROI for the AY 2016-17 on 30.11.2016 declaring a total income of Rs.4,40,18,810. The case was selected for scrutiny under CASS. The assessee had certain international transactions with its AE and therefore a reference to the TPO was made for determination of ALP of the assessee’s international transaction. The TPO made a TP adjustment towards receipt of management services by the assessee from its AE which resulted in an adjustment of Rs.22,03,14,210. The AO passed a draft assessment order incorporating the TP adjustment. The AO also made a disallowance u/s. 40(a)(i) for non-deduction of tax at source on the same payments made by the assessee for receipt of management services by holding that the payments are in the nature of Fees for Technical services [FTS].
Aggrieved the assessee filed its objections before the DRP, who confirmed the additions/disallowances. Aggrieved by the final order of assessment passed pursuant to the directions of the DRP, the assessee is in appeal before the Tribunal.
Assessee mainly contended that two assessment orders passed by TPO. However, the order dated 31.10.2019 is a manual order without containing a Documentation Identification Number (DIN) and the order dated 1.11.2019 is an order with a DIN.
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