Loading judgment…
Facts
The assessee filed an appeal against an Assessment Order dated 15.07.2022 for AY 2018-19, originating from a Dispute Resolution Panel order. The assessee sought to withdraw Ground No.1 related to Transfer Pricing Adjustment due to an APA agreement. For Ground No.2 concerning DDT credit, the AO was directed to verify and provide credit if paid.
Held
The Tribunal permitted the withdrawal of Ground No.1 and dismissed it. Ground No.2 was allowed for statistical purposes, directing the AO to verify the DDT credit. Ground No.3 regarding penalty initiation was dismissed as premature.
Key Issues
Whether Ground No.1 related to Transfer Pricing Adjustment can be withdrawn due to an APA agreement. Whether the assessee is eligible for DDT credit as per Ground No.2, and whether initiation of penalty under Ground No.3 is premature.
Sections Cited
143(3), 144C(13), 144C(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “C” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
In this case, Assessee has filed an appeal against the Assessment Order dated 15.07.2022 passed u/s.143(3) r.w.s 144C(13) of the Act, 1961 for the A.Y.2018-19, emanating from order of the Dispute Resolution Panel u/s.144C(5) of the Act, dated 21.06.2022.
At the outset, the Assessee filed a letter dated 09.06.2025. The relevant paragraph of the said letter is reproduced here as under : “With respect to the abovementioned APA application, we wish to inform Your Honours that the APA has been signed between the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India (CBDT) and the Assessee on 6 February 2025. We have attached the copy of the signed agreement as Annexure 1 for your ready reference.
Basis the above, we wish to submit that since the abovementioned APA agreement signed between the CBDT and the Assessee, covers international transaction of provision of IT support services and ITeS, the Assessee wishes to Suo-moto withdraw the Ground No. 1 of the grounds of appeal (including any sub-grounds) as the said grounds are now covered under APA, Grounds of appeal other than Ground No. 1 of the grounds of appeal (including any sub-grounds) remains status quo and valid for subject matter of appeal. We have attached a copy of the captioned appeal as Annexure 2 for your ready reference”
2.1 Thus, Assessee intended to withdraw Ground No.1 of the appeal which is related to Transfer Pricing Adjustment. Ld.DR for the Revenue had no objection. Accordingly, we permit to withdraw the Ground No.1 of the Assessee, hence Ground No.1 is dismissed.
Ground No.2 : 3. Ld.AR submitted that Assessee had filed rectification application before the Assessing Officer with reference to Ground No.2 which is related to “Dividend Distribution Tax(DDT) Credit Not Given”. Ld.AR submitted that the Assessing Officer(AO) has not considered the payment of DDT, though copy of challan was provided. Ld.AR submitted that she has been informed that Assessing Officer has passed a Rectification Order allowing the Credit of Dividend Distribution Tax. In these facts and circumstances of the case, we direct the ld.Assessing Officer to verify the Assessee’s claim of payment of Dividend Distribution Tax and give credit, if paid. Accordingly, Ground No.2 is allowed for statistical purpose.
Ground No.3: 4. This Ground is regarding initiation of penalty. This is premature, hence, dismissed.
In the result, appeal of the assessee is Partly allowed for statistical purpose. Order pronounced in the open Court on 24 June, 2025.