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Facts
The appellant company filed an appeal concerning the arm's length price of international transactions, short grant of TDS credit, and short grant of advance tax credit. During the hearing, the appellant stated they were withdrawing the appeal as they had signed an Advanced Pricing Agreement (APA) with the CBDT. An additional ground was raised regarding the assessment order being barred by limitation.
Held
The tribunal noted that the appellant withdrew ground no. 1 concerning the arm's length price as an APA was signed. Grounds 3 & 4 were not pressed as credit was already granted. The AO was directed to verify the issue of short grant of TDS credit (ground no. 2) and compute interest u/s. 234B (ground no. 5). The additional ground regarding limitation was also not pressed.
Key Issues
Withdrawal of appeal due to APA agreement and direction to AO for verification of TDS credit and computation of interest.
Sections Cited
234B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘J‘ BENCH
आदेश / O R D E R PER OMKARESHWAR CHIDARA (A.M.): 1. In the case of M/s. Marsh India Insurance Brokers Pvt. Ltd, the appellant company filed an appeal for the A.Y.2015- 16 with the grounds of appeal relating to determining the arm’s length price of the international transaction of payment for services rendered to the appellant company by its associated enterprises, short grant of credit for tax deducted at source, short grant of credit for advance tax paid and non-
2 M/s. Marsh India Insurance Brokers Pvt. Ltd. grant of credit for self-assessment tax paid and consequential wrong levy of interest u/s.234B. Subsequently, the assessee filed a letter dated 28/09/2023 with an additional ground that the final assessment order dated 31/07/2019 passed by the Assessing Officer (AO for short)is barred by limitation by relying on the decision of CIT vs. Roca Bathroom Products Pvt. Ltd. 445 ITR 537.
During the course of hearing on 17th April 2024, the appellant company has stated that they are withdrawing the appeal.
Subsequently, on 27/05/2024 the appellant company had stated that the reason for withdrawing the appeal is that their company has signed an Advanced Pricing Agreement (APA) with Central Board of Direct Taxes (CBDT) on 27/03/2024 and a copy of agreement was filed.
On 14/06/2024, the appellant company filed a letter giving the summary of their arguments which is reproduced as follows:-
3 M/s. Marsh India Insurance Brokers Pvt. Ltd. Ground Particulars Remarks No. 1 Determining the arm's length The Appellant is price of the international seeking withdrawal of transaction of payment for this ground as an services rendered to the Advance Pricing Appellant by its associated Agreement has been enterprises as NIL signed by the Appellant with the Revenue on this issue. A copy of the letter dated 17 April 2024 filed by the Appellant for withdrawal of this ground is enclosed as Annexure-2 2 Short grant of credit for tax The Appellants submits deducted at source. that the matter should be remanded back to AO to verification the issue of short grant of TDS credit amounting to INR 10,49,415 and pass appropriate order. 3 & 4 Short grant of credit for advance The Appellant is not tax paid and non-grant of credit pressing these grounds for Self-Assessment tax paid since the credit for the said amount has been granted in the rectification order dated 20 September 2019. 5 Consequential interest under Since the same being section 234B of the Act consequential in nature Appellants request the bench to give Directions to the AO for verification.
4 M/s. Marsh India Insurance Brokers Pvt. Ltd. 6. Additional ground filed by the The Appellant is not letter dated 28 September 2023 pressing this ground on the ground that the final and a copy of the letter assessment order dated 31 July dated 6 May 2024 filed 2019 is barred by limitation by by the Appellant for not relying on the decision of CIT pressing the ground is vs. Roca Bathroom Products enclosed as Annexure-3 Pvt. Ltd. 445 ITR 537
From the above table, it could be seen that ground No.1 was withdrawn by the appellant company.
With respect to the ground of short grant of credit for tax deducted at source, the assessee requested matter should be remanded back to AO for verification on the issue of short grant of TDS credit amounting to Rs.10,49,415/- and pass appropriate order. Accordingly, the AO is directed to verify and pass the necessary order.
Relating to the grounds of 3 & 4, the appellant company mentioned that they are not pressing these grounds since the credit was already granted to them for the said amounts, vide rectification order passed by the Income Tax Department dated 20/09/2019.
With regard to consequential interest u/s.234B of the Income Tax Act, AO is directed to pass necessary order as per law as it is consequential in nature.
With respect to the additional ground of limitation, by relying on the decision of CIT vs. Roca Bathroom Products
Per contra, the DR did not object to the withdrawal of appeal by appellant company.
To sum-up, the appellant company withdrew the ground No.1, not pressing the grounds of 3 & 4 and the additional ground. Coming to the grounds No.2 & 5, the AO is directed to verify the issue of short grant of TDS and compute the interest u/s.234B after making necessary changes as mentioned above.
The appeal is decided on the above lines and hence, the same is partly allowed for statistical purposes.
Order pronounced on 9th July, 2024.