HONDA TRADING CORPORATION INDIA PRIVATE LIMITED,NEW DELHI vs. DC/ACIT, CIRCLE 10(1), DELHI / ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NEW DELHI

ITA 5286/DEL/2024Status: DisposedITAT Delhi04 February 2026AY 2021-221 pages
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What did the Tribunal hold?

The Tribunal held that the initial transfer pricing adjustment for the trading segment was NIL as the assessee's margin fell within the arm's length range. Regarding the commission differential, the Tribunal deleted the addition, finding it unjustified and not made after providing the assessee an opportunity. Interest under sections 234A, 234B, and 234C was directed to be verified and charged as per law.

What were the facts?

The assessee, Honda Trading Corporation India Pvt. Ltd., filed its return of income for AY 2021-22. The case was selected for scrutiny, and the Assessing Officer (AO) referred it to the Transfer Pricing Officer (TPO). The TPO proposed an adjustment related to the trading segment, which was later reduced. Subsequently, a further adjustment was made regarding commission paid versus received.

What were the issues?

Whether the transfer pricing adjustment for the trading segment was correctly made, and whether the addition on account of differential commission paid versus received was justified and made in accordance with law.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 144B,Section 92CA(3),Section 154,Section 92F(ii),Section 234A,Section 234B,Section 234C,Section 270A

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

Before: YOGESH KUMAR U.S. & SHRI BRAJESH KUMAR SINGH

For Appellant: Shri Nageshwar Rao, Adv. (virtual), Shri Parth, Adv
For Respondent: Shri Ravinder Yadav, Sr. DR
Hearing: 13.11.2025

PER BRAJESH KUMAR SINGH, AM,

This appeal has been preferred by the assessee against the Final Assessment Order dated 23.10.2024 passed by the Assessing Officer (AO) under Section 143(3) read with Sections 144C(13), r.w.s. 144B of the Income-tax Act, 1961 (“the Act”),

ITA No.-5286/Del/2024 Honda Trading Corpora"on India Pvt. Ltd. pursuant to the directions of the Hon'ble Dispute Resolution Panel (DRP) dated 25.09.2024 for the Assessment Year 2021-22. 1.1 Ground no. 1 and 2 of the appeal are reproduced as under:

“1. Impugned order is time barred, invalid an

The order continues below.

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