The case ITA No. 460/Del/2021 pertains to an appeal by CHW FORGE Pvt. Ltd. against the order of the Pr. CIT, Ghaziabad. The main contention involves the revision of an assessment order under section 263 of the Income Tax Act, 1961, for the Assessment Year 2016-17.
The appellant, CHW FORGE Pvt. Ltd., faced an order passed by the Pr. CIT on 26th February 2021, which was challenged on various grounds including the lack of a full opportunity to be heard and allegations of the order being erroneous and prejudicial to the interests of revenue.
The appellant raised several issues, primarily focusing on the disallowance of Rs. 51,68,235 under the provisions of section 40(a)(i) and questioning the justifiability of the assessment order under section 143(3) as erroneous. The detailed arguments address procedural lapses and substantive legal points concerning fees for technical services and management fees paid to non-resident parties.
The tribunal’s decision, pronounced on 14th November 2022, set aside the impugned order and restored the matter to the Pr. CIT for fresh adjudication, highlighting the impact of the COVID-19 pandemic on the procedural aspects of the case. The tribunal emphasized the need for providing the appellant another opportunity to present their case in light of the principles of natural justice.
This case highlights significant procedural and substantive issues within the framework of international taxation and the interpretation of DTAAs, particularly concerning the taxability of international transactions and the procedural rights of taxpayers. The decision also underscores the importance of adhering to the principles of natural justice in the administration of tax laws.
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