IQOR INDIA SERVICES PRIVATE LIMITED,DELHI vs. DEPUTY COMMISSIONER OF INCOME-TAX, DELHI

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ITA 3114/DEL/2024Status: HeardITAT Delhi09 May 2025Bench: SHRI PRAKASH CHAND YADAV (Judicial Member), SHRI BRAJESH KUMAR SINGH (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the AO arbitrarily added amounts despite the TPO's observation that no adjustment was required. The Tribunal deleted the addition of Rs. 3,84,06,821/-. Remaining grounds were restored to the AO for fresh examination.

What were the facts?

The assessee appealed an order of the Assessing Officer (AO) dated 30.04.2024 concerning AY 2020-21. The AO sustained an addition of Rs. 3,84,06,821/- ignoring directions from the Dispute Resolution Panel (DRP) and the TPO's order giving effect.

What were the issues?

Whether the Assessing Officer was justified in making an addition contrary to the directions of the Dispute Resolution Panel and the TPO's order giving effect.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘H’: NEW DELHI

Before: SHRI PRAKASH CHAND YADAV & SHRI BRAJESH KUMAR SINGH

For Appellant: Shri K.M. Gupta, Adv
For Respondent: Shri S K Jadhav, CIT-DR
Hearing: 07.05.2025Pronounced: 09.05.2025

ORDER PER BRAJESH KUMAR SINGH, AM

The present appeal of the assessee as arising out of the order of the Ld. Assessing Officer dated 30.04.2024 having DIN No.ITBA/AST/S/ 143(3)/2024-25/1064446176(1) and relates to Assessment year 2020-21.

2.

The assessee has raised eight grounds of appeal. However, grounds no.1, 7 and 8 are general in nature and hence require no specific adjudication.

3. In ground no.2, the assessee has challenged the action of the Assessing Officer in not following the direction of the learned Dispute Resolution Panel (in short’ Dispute Resolution Panel')

4. In ground no.4 & 5, the assessee has challenged the action of CPC Bangalore in making the certain disallowances.

5. With respect to ground no.2, the ld. Counsel for the assessee drawn the attention of the Bench towards the assessment order and pointed out that the Assessing Officer while passing the final assessment order has sustained the addition of Rs.3,84,06,821/- ignoring the directions of the DRP as well as the order giving effect of the TPO.

6.

The ld. DR relied upon the orders of the authorities below.

7.

We have heard the rival submissions and perused the material available on record. We observe that the TPO while giving effect order to the ld. DRP has observed as under: -

In view of the directions of Hon’ble Dispute Resolution Panel, earlier adjustment is reduced from Rs.3,84,06,821/- to Rs.0. Assessing Officer is requested to make the necessary changes as discussed above.

8.

A perusal of the above observations of the TPO dated 19.04.2024 would prove beyond doubt that no adjustment qua the computation of ALP were remaining in this case. However, the Assessing Officer has arbitrarily added these amounts, which is not permissible in law. Therefore, we hereby delete the addition of Rs.3,84,06,821/-. Ground No.2 of the appeal is allowed.

9.

So far as the remaining grounds are concerned, we restore these issues to the file of the Jurisdictional Assessing Officer (in short ‘JAO’) and direct him to examine these issues afresh in accordance with law. Grounds no.3, 4, 5 and 6 are allowed for statistical purposes.

10.

In the result ground number 2 is allowed and Grounds no.3, 4, 5 and 6 are allowed for statistical purposes.

Order pronounced in the open court on 09th May, 2025.

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