LG ELECTRONICS INDIA LIMITED,DELHI vs. DCIT, CIRCLE-13(1), DELHI

ITTPA 187/DEL/2026Status: DisposedITAT Delhi21 July 2026AY 2022-2321 pages
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What were the facts?

The assessee, L. G. Electronics India Pvt. Ltd., filed five appeals before the Income Tax Appellate Tribunal (ITAT) challenging assessment orders for assessment years 2015-16, 2017-18, 2018-19, 2020-21, and 2022-23. These orders were passed by the National e-Assessment Centre and the Deputy Commissioner of Income Tax, Circle-13(1), Delhi, under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961. The appeals involved several identical issues concerning transfer pricing adjustments related to advertisement/marketing and sales promotion expenses, royalty payments, headquarter expenses, and service warranty charges. A significant development was the parties arriving at an Advance Pricing Agreement (APA) under Section 92CC of the Act on January 5, 2026, covering the impugned international transactions and rollback years.

What did the Tribunal hold?

The Tribunal acknowledged that the parties had entered into an Advance Pricing Agreement (APA) under Section 92CC of the Income Tax Act, 1961, on January 5, 2026. This APA covered the impugned international transactions and the computation of adjustments for the rollback years. Given this development, the Tribunal found that the issues concerning transfer pricing adjustments for advertisement/marketing and sales promotion (AMP) expenses, royalty payments, headquarter expenses, and service warranty charges were resolved by the APA. The Tribunal also addressed other grounds raised by the assessee. The issue of deduction of education cess on income tax payments was not pressed by the assessee and was rejected. The computation of interest under Section 234A was directed to be re-decided afresh by the Assessing Officer. Penalty proceedings under Section 270A were not pressed and were rejected as premature. Credit of self-assessment tax and tax credit of advance tax were restored to the Assessing Officer for fresh computation and reconciliation. The Tribunal also directed the Assessing Officer to ensure correct tax rate application and avoid double addition of transfer pricing adjustments. The Tribunal noted that certain issues were consequential and rejected them as such.

What were the issues?

1. Whether the transfer pricing adjustments concerning advertisement/marketing and sales promotion (AMP) expenses, royalty payments, headquarter expenses, and service warranty charges, which are the subject of the appeals, are to be decided in light of the Advance Pricing Agreement (APA) entered into by the assessee and the Revenue? Assessee's Contention: The assessee, through its senior counsel, argued that all the substantive issues, including those related to transfer pricing adjustments for AMP expenses, royalty payments, headquarter expenses, and service warranty charges, are no longer res integra. This is because the assessee and the Revenue have entered into an APA under Section 92CC of the Act on January 5, 2026, which covers the impugned international transactions and the computation of adjustments for the rollback years. The APA document was presented as evidence. Revenue's Contention: The Revenue did not dispute the assessee's submission regarding the APA and its implications on the issues raised in the appeals.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 92CC,Section 92CC(1)(a),Section 234A,Section 270A,Section 234B,Section 234C,Section 234D,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘I’, NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL

For Appellant: Adv. Sh. Neeraj Jain, Adv, Adv. (Virtual)
Hearing: 01.06.2026Pronounced: 21.07.2026

PER SATBEER SINGH GODARA, JM: These assessee’s five appeals ITA No. 490/Del/2021, 2493/Del/2022, 1036/Del/2023, 4397/Del/2024 & 187/Del/2026 arise against the National e-Assessment Ce

The order continues below.

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