CANON INDIA PRIVATE LIMITED,GURUGRAM, HARYANA vs. ASSESSMENT UNIT, VERIFICATION UNIT, TECHNICAL UNIT, REVIEW UNIT, INCOME TAX DEPARTMENT, NFAC

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND MS MADHUMITA ROY, JUDICIAL MEMBER IT(TP)A 31/Del/2025 (Assessment Year:2022-23) Canon India Pvt. Ltd, Vs. Assessment Unit, 7th Floor, Building No. 5, Verification Unit, Technical Tower B, DKF Cyber City, Unit, Review Unit, Income DLF Phase III, Gurugram, Tax Department, NFAC, Haryana (DCIT, Circle-4(2), Delhi (Appellant) (Respondent) PAN: AAACC4175D SA 619/Del/2025 (In IT(TP)A 31/Del/2025) (Assessment Year:2022-23) Canon India Pvt. Ltd, Vs. Assessment Unit, 7th Floor, Building No. 5, Verification Unit, Technical Tower B, DKF Cyber City, Unit, Review Unit, Income DLF Phase III, Gurugram, Tax Department, NFAC, Haryana (DCIT, Circle-4(2), Delhi (Appellant) (Respondent) PAN: AAACC4175D Assessee by : Shri Himanshu S Sinha, Adv Shri Prashant Meharchandani, Adv Shri Jainender Singh Kataria, Adv Revenue by: Shri S. K. Jadhav, CIT DR Date of Hearing 16/04/2026 Date of pronouncement /04/2026

O R D E R PER M. BALAGANESH, A. M.: The Assessee Canon India Pvt Ltd (hereinafter referred to as 1. ‘assessee) by filing the present appeal sought to set aside the impugned assessment order dated 01.12.2025 passed by the Assessing Officer (AO) u/s 143(3) r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 (for short ‘the Act’) inconsonance with the order passed by the Dispute Resolution Panel (DRP)-1, New Delhi dated 08.10.2025 u/s 144C and order of TPO dated 19.11.2025 passed u/s 144C of the Act. 2. At the outset, the ld AR drew our attention to Ground No. 4 raised by the assessee wherein it was contested that the final assessment order was passed beyond the period of limitation in violation of provisions of Section 144C(13) of the Act. Since, this goes to the root of the matter, we deem it fit to address this ground first. 3. We have heard the rival submissions and perused the material available on record. The assessee is a Private Limited Company incorporated in 1996 and is a part of Canon Group primarily engaged in the distribution of compressive range of digital products that includes photocopiers, multifunctional peripherals, fax machines, printers, scanners, digital cameras and multimedia projectors. The original return was filed by the assessee company for assessment of 2022-23 on 29.11.2022, declaring total income of ₹168,98,83,680/- which was later revised on 28.12.2022 declaring total income of Rs. 168,98,83,680/-. Considering the international transactions carried out by the assessee company with its Associated Enterprises (AEs) reference u/s 92CA(1) of the act was made to the learned Transfer Pricing Officer (TPO). An order stood passed by the ld TPO u/s 92CA(3) of the Act on 20.01.2025, proposing the transfer pricing adjustment of Rs. 299,65,80,000/- on account of advertising, marketing and promotion expenditure (AMP) expenditure on substantive basis and ₹62,64,50,000/- on account of AMP expenditure using Bright Line Test (BLT) approach on protective basis. A draft assessment order u/s 143(3) r.w.s. 144C(1) of the Act was passed on 17.02.2025 determining total income at ₹468,64,63,680/- only by making the transfer pricing adjustment on account of AMP expenditure as stated supra. The assessee preferred objections Page | 2 before the ld Dispute Resolution Panel (DRP). The ld DRP disposed of the objections of the assessee vide its directions u/s 144C(5) of the Act dated 08.10.2025. It is pertinent to note that DIN was generated for the purpose of DRP directions and the DRP directions u/s 144C(5) of the Act dated 8.10.2025 was uploaded in ITBA portal on 08.10.2025. Hence, the final assessment order giving effect to the directions of the ld DRP is to be framed by the ld AO on or before 30.11.2025 i.e. within one month from the end of the month on in which the DRP directions were received by the Assessing Officer in terms of Section 144C(13) of the Act. In the instant case, the final assessment order was framed u/s 143(3) r.w.s. 144C(13) r.w.s. 144B of the Act on 01.12.2025 by the ld AO. It is not in dispute that the DRP directions u/s 144C(5) of the act were uploaded in the ITBA portal on 08.10.2025. The Hon’ble Jurisdictional Delhi High Court in the case of Sumanjeet Agarwal Vs. ITO reported in 449 ITR 517 (Del) had categorically held that the date of uploading of the order in the ITBA portal shall be reckoned as the due date for the purpose of all sections of the Act. It is not the case of the revenue that the DRP directions dated 08.10.2025 was not received by the ld AO on 8.10.2025, being the date of uploading in the ITBA portal. We find from the perusal of the final assessment order, which is duly digitally signed by the AO, the order is dated 01.12.2025 and the same is delayed by 12 minutes and 21 seconds, which is beyond the time limit prescribed u/s 144C(13) of the Act. Similar issue had also arose in assessee’s own case in ITA No. 1940/Del/2022 for AY 2012-13 dated 13.12.2024 before this Tribunal. Hence, we hold that the final assessment order framed on 01.12.2025 in consonance with the faceless assessment regime u/s 144B(6) r.w.s. 144C(13) of the Act is hereby declared as barred by limitation and void ab initio. Hence, the assessment made herein is hereby quashed. Since relief is granted to the assessee on this preliminary ground vide ground No. 4, the other grounds raised by the assessee need not be adjudicated and they are left open. 4. In the result, the appeal of the assessee is allowed. 5. Since the appeal is disposed of, the stay petition preferred by the assessee is hereby dismissed as infructuous. Order pronounced in the open court on 24/04/2026. -Sd/- -Sd/- (MADHUMITA ROY) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 24/04/2026 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi