M/S. SEG AUTOMOTIVE INDIA PRIVATE LIMITED ,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(3), BENGALURU

The brief facts of the case as coming out from the orders of authorities below are that the assessee is a domestic company and formally known as Robert Bosch Starter Motors Generators India Pvt. Ltd. It is engaged in the business of automotive manufacturing operations and generator for the domestic and overseas markets, filed its return of income for the impugned assessment year on 15.2.2021 declaring NIL income and a loss of Rs.1,43,12,530/-. The same was processed u/s 143(1) of the Act and thereafter selected for

The assessee has raised so many grounds before us. However, at the time of hearing, ld. Counsel for the assessee at the outset argued that matter may be restored to the file of TPO, since the ld. TPO failed to grant meaningful opportunity to the assessee with respect to the adjustments made by the TPO qua royalty paid by the assessee. Ld. Counsel for the assessee drawn the attention of the bench towards page 50 of the TP order to contend that the TPO has issued a notice on 19.7.2023 asking for the objections of the assessee vis-à-vis disallowance of royalty paid by the assessee. Counsel for the assessee contended that the said notice was delivered on wrong e-mail ID and hence could not be complied with by the assessee. It is next submitted that on 24.7.2023 when the assessee came to know about the notice dated 19.7.2023, assessee asked for certain more time to file its reply. However, the TPO could not grant any time and passed the order.

Ld. D.R. appearing on behalf of the revenue relied upon the orders of authorities below. However, could not be able to controvert the contention of the assessee regarding the delivery of show cause notice at wrong e-mail ID.

We have heard the rival submissions and perused the materials available on record. We observe that it is an admitted position of fact that the TPO has failed to grant sufficient time to the

So far as the other issues are concerned i.e. interest on receivables, ld. TPO will also examine this issue afresh and the issue involved in ground No.12 i.e. disallowance of Employee’s contribution of ESI & PF, we are of the view that this issue is no more resintgra in view of the judgment of Hon’ble Apex Court in the case of Checkmate Services and hence it does not require any fresh consideration. With these observations, conclude this matter.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes.