ACIT, NEW DELHI vs. M/S GUJARAT GUARDIAN LTD., NEW DELHI

ITA 4791/DEL/2010Status: DisposedITAT Delhi16 July 2025AY 2004-0566 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) erred in not adjudicating the additional ground regarding sales tax incentives. It admitted this ground and decided that appellate authorities can consider new claims. The Tribunal also allowed 60% depreciation on software and allowed the bad debt write-off claim subject to proof of write-off in books.

What were the facts?

The assessee, Gujarat Guardian Ltd., engaged in the manufacture and sale of float glass, had international transactions with its associated enterprise. The assessee used the Transactional Net Margin Method (TNMM) to benchmark these transactions, while the TPO applied the Comparable Uncontrolled Price (CUP) method. The CIT(A) partly allowed the assessee's appeal, restricting the TPO's adjustment.

What were the issues?

The key issues involved the appropriateness of the transfer pricing method (TNMM vs. CUP), the allowability of bad debts written off, depreciation on software, and the admissibility of an additional ground for sales tax incentives in reassessment proceedings.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 36(1)(vii),Section 148,Section 147

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(8)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DELHI BENCHES, ‘H’ NEW DELHI

Before: SHRI PRAKASH CHAND YADAV & SHRI BRAJESH KUMAR SINGH

For Appellant: Shri Ajay Vohra, Sr. A.R, Shri Neeraj Jain, A.R, Shri Ramit Katiyal, A.R. &, Shri Kunal Pandey, A.R
For Respondent: Shri Bhopal Singh, Sr. D.R
Pronounced: 06.05.2025

Heard together (2 matters)

ITA Nos.4859/Del/2009
ITA No.2539/Del/2017

Read from the judgment's own cause title. This page is filed under one of them.

PER PRAKASH CHAND YADAV, JUDICIAL M

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 92CA

All 3,978 judgments and leading authorities on Section 92CA →

Recent GST High Court judgments

Search GST case law →