SHAHI EXPORTS PRIVATE LIMITED,NEW DELHI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 8, DELHI, NEW DELHI

The present appeal has been filed by the assessee against the order dated 19.12.2024 of Ld. Commissioner of Income Tax (A)-24, New Delhi [“Ld.CIT(A)”] in Appeal No.CIT(A), Delhi- 24/10856/2015-16 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 22.03.2024 passed u/s 143(3) r.w.s. 254 of the Act pertaining to assessment year 2016-17.

Brief facts of the case are that the assessee filed its return of income u/s 139(1) on 31.11.2016, declaring total income of INR 399,93,33,310/- which was revised later on at INR 4,07,70,64,820/-. The case of the assessee was selected for scrutiny and since the assessee is having specific domestic transaction therefore, the reference was made to Transfer Pricing Officer (“TPO”) u/s 92CA of the Act on 20.11.2018. The TPO vide its order dated 31.10.2019 passed u/s 92CA(1) of the Act proposed the adjustment accordingly, the draft assessment order was passed by the AO. The assessee preferred appeal against the draft assessment order before Ld. Dispute Resolution Panel (“DRP”) vide its order dated 26.03.2021 reduced the adjustments proposed by TPO and accordingly, the final assessment order u/s 143(3)/144C(13) on 30.06.2021 wherein total income of the assessee was assessed at INR 5,69,49,97,880/-.

Against this order, the appeal was filed before the Tribunal wherein the Co-ordinate Bench of ITAT in dated 07.01.2022 remanded the matter to the file of AO with certain directions. In compliance to the directions given by the Co-ordinate Bench of ITAT, the AO passed the set aside order u/s 143 r.w.s 254 dated 22.03.2024 against which the appeal was preferred by the assessee before Ld.CIT(A). Ld.CIT(A) vide impugned order dated 09.12.2024 dismissed the appeal of the assessee being infructuous and non-maintainable. Thus, the present appeal filed by the assessee before the Tribunal.

With this background, we proceed to decide Ground Nos. 1 to 3 taken by the assessee. From the perusal of para 4.1 of the impugned order of Ld.CIT(A), it is seen that Ld.CIT(A) misunderstood the appeal of the assessee as filed against the final assessment order dated 30.06.2021 and thus, observed that as per the existing provisions, the appeal lies before ITAT and not before Ld.CIT(A).

The said findings of Ld.CIT(A) are apparently taken on the basis of wrong appreciation of the facts where the assessee filed the appeal before Ld.CIT(A) against the order passed u/s 143(3) r.w.s 254 of the Act dated 22.03.2024 which fact though mentioned by Ld.CIT(A) in para 1 of its order however, while disposing the appeal of the assessee made a reference of the final order passed u/s 30.06.2021. Once the appeal of the assessee is set aside by the Co- ordinate Bench of Tribunal with certain directions for re- consideration of the facts, then the consequential proceedings are fresh proceedings and the assessee is at liberty to file appeal against the order of the AO before Ld.CIT(A) in case he has not opted to prefer the filing of objections before Ld.DRP u/s 144C of the Act. This being so, the action of Ld.CIT(A) in dismissing the appeal of the assessee is contrary to the provisions of law and therefore, the order of Ld. CIT(A) is set aside and is directed to decide the appeal of the assessee afresh on the grounds taken against the order passed u/s 143(3) r.w.s. 254 dated 22.03.2024 in accordance with law. With these directions, Ground Nos. 1 to 3 raised by the assessee are allowed for statistical purposes.

Since we have already allowed the assessee’s technical grounds and remand back the matter to the file of Ld.CIT(A) for deciding the issue on merits therefore, the remaining grounds of appeal became academic and not adjudicated hence, dismissed.

In the result, appeal of the assessee is partly allowed for statistical purposes.