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Facts
The assessee, SkillNet Solutions India Private Limited, filed an appeal against an Assessment Order. The assessee later requested to withdraw the appeal as it was found to be a duplicate filing. An earlier physical appeal was filed, and a subsequent online appeal was filed for the same assessment year, leading to two separate appeal numbers.
Held
The Tribunal noted that the assessee had filed both a physical appeal and an online appeal, which were numbered separately. The assessee requested permission to withdraw the online appeal due to this duplication. Consequently, the Tribunal dismissed the appeal.
Key Issues
Whether the appeal should be dismissed as it is a duplicate filing, and whether to allow the assessee's request for withdrawal.
Sections Cited
143(3), 144C(13), 144B, 144C(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “H” BENCH, MUMBAI
IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SkillNet Solutions India Private Limited 817, Raheja Chambers, Free Press Journal Road, Nariman Point, Mumbai-400021.Maharashtra. [PAN:AAFCS3362P] …………. Appellant Vs Deputy Commissioner of Income Tax, Circle – 3(3)(1), Aaykar Bhavan, Mumbai - 400020, …………. Respondent Maharashtra. Appearance For the Appellant/Assessee : Shri Sagar Sawhney For the Respondent/Department : Shri Uodal Raj Singh Date Conclusion of hearing : 07.11.2024 Pronouncement of order : 07.11.2024 O R D E R [ Per Rahul Chaudhary, Judicial Member:
1. 1. The present appeal preferred by the Assessee is directed against Assessment Order, dated 06/09/2024, passed by the Assessing Officer under Section 143(3) r.w.s 144C(13) read with section 144B of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’], as per the direction issued by Commissioner of Income Tax (Dispute Resolution Panel (2), Mumbai-3 [for short ‘DRP’] on 21/08/2024 under Section 144C(5) of the Act for the Assessment Year 2021- 2022.
2. The Assessee has raised following grounds of appeal : Assessment Year 2021-2022 Based on the facts and circumstances of the case, and in law, Skillnet Solutions India Private Limited (hereinafter referred to as the Appellant') respectfully craves leave to prefer an appeal against the order passed by Assessment Unit, Income Tax Department / learned Assessing Officer ("ld. AO") dated
06. September 2024/ learned Transfer Pricing Officer ("ld. TPO") in pursuance of the directions issued by Hon'ble Dispute Resolution Panel ("DRP") (dated
21. August 2024) under Section 144C(5) of the Income-tax Act, 1961 ('the Act') on the following grounds:
1. Transfer Pricing Adjustment: INR 114,172,508/- On the facts and in the circumstances of the case and in law, the Id. TPO and the Id. AO under the directions issued by Hon'ble DRP dated 21 August 2024, erred in confirming the adjustment of INR 114,172,508/- by virtue of computation of arm's length price of international transaction of rendering of software consultancy and support services to AE vide its impugned order dated 06 September 2024.
2. Unjust/Erroneous rejection of the segmental Profit and Loss account prepared by the appellant in its Transfer Pricing Study Report On the facts and in the circumstances of the case and in law, the Ld. TPO erred in and Hon'ble DRP further erred in rejecting the segmental profit and loss account prepared by the appellant in its Transfer Pricing Study Report bifurcated into the following: i) Services rendered to holding company viz. SkillNet Solutions Inc, USA, ii) Services rendered to independent third parties and iii) Non-operating expenses
Erred in not considering the impact of COVID-19 pandemic on the business of the appellant as well as the holding company a. On the facts and in the circumstances of the case and in law, the Id. TPO erred and Hon'ble DRP further erred in not considering the impact of COVID-19 pandemic on the business of the appellant as well as the holding company as SkillNet Group provides services to companies in the retail space which severely and negatively impacted the capacity planning and 2 Assessment Year 2021-2022 implementation of the appellant for the year under consideration. b. On the facts and in the circumstances of the case and in law, the Id. TPO erred in and the Hon'ble DRP further erred in not considering all the supporting documents and evidences with regards to under-utilised capacity due to COVID-19 pandemic. c. On the facts and in the circumstances of the case and in law, the Id. TPO erred in and the Hon'ble DRP further erred in upholding / confirming the action of the Id. TPO in not considering the opportunity cost of third-party business lost by the appellant due to COVID-19 pandemic. d. On the facts and in the circumstances of the case and in law, the Hon'ble DRP erred in not comparing three years weighted average OP/OC mark-up of comparable companies (post revenue adjustment in FY 2020-21) with the appellant's three years weighted average OP/OC mark-up. The above grounds of appeal
are mutually exclusive & without prejudice to each other.
3. Assessee vide its letter, dated 07/11/2024, has prayed for withdrawal of the present appeal [ Assessment Year 2021-2022 wherein it has been stated as under: The Appellant would like to inform your Honour that it had filed a physical appeal before Hon’ble ITAT (ITA 5016/Mum/2024) on 27th September 2024 and it had also filed duplicative appeal online on ITAT portal (ITA 5078/Mum/2024) on 28th September, 2024 for A.Y. 2021-22. Accordingly, two separate appeals have been considered by the Hon’ble ITAT. This resulted in a duplication of the appeal with the Hon’ble ITAT. The appellant respectfully requests your Honour to permit us to withdraw appeal filed online on ITAT portal (ITA 5078/Mum/2024)”
4. The Appellant had filed the appeal in physical form and thereafter, filed a copy of the said appeal electronically. Inadvertently, both the appeals were numbered separately. Accordingly, is dismissed as being duplicate appeal.
3 Assessment Year 2021-2022