AVERY DENNISON (INDIA) P.LTD,NEW DELHI vs. ACIT, CIRCLE-1(1), NEW DELHI

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ITA 582/DEL/2023Status: DisposedITAT Delhi27 November 2024AY 2012-13Bench: SHRI PRADIP KUMAR KEDIA (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)3 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal acknowledged that the underlying TP adjustments, which were the subject of previous related appeals, had been deleted by a coordinate bench following a High Court order. Given that the impugned assessment orders were based on issues that no longer survived, the Tribunal accepted the assessee's submission that the appeals had become infructuous.

What were the facts?

The assessee appealed against final assessment orders for AYs 2012-13 and 2015-16. These assessments stemmed from a previous ITAT order dated 27.11.2019 that remanded issues to the TPO. The Delhi High Court later set aside this ITAT remand order on 21.02.2023, directing a decision on merits. Consequently, the coordinate bench decided related appeals on 05.06.2023 by deleting the Transfer Pricing (TP) adjustments.

What were the issues?

Whether assessment orders become infructuous after a higher court sets aside the basis for previous related orders and the underlying adjustments are deleted.

Which sections of the Income-tax Act were involved?

Section 144C,Section 254,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : I : NEW DELHI

Before: SHRI PRADIP KUMAR KEDIA & SHRI ANUBHAV SHARMA

For Appellant: Shri S.S. Tomar, Advocate &, Shri Ankit Sahani, Advocate
For Respondent: Shri Dharamvir Singh, CIT-DR
Hearing: 18.11.2024Pronounced: 27.11.2024

ORDER PER BENCH: These appeals are preferred by the assessee against the final assessment orders dated 27.01.2023 and 30.01.2023 passed u/s 144C r.w.s. 254/143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Asstt. Commissioner of Income-tax, Circle 1(1), Delhi (hereinafter referred to as the Ld. AO) for assessment years 2012-13 and 2015-16, respectively.

2.

Heard and perused the record. The ld. representatives of the assessee has mentioned that these appeals of the assessee have become infructuous in the ITAs No.582 & 583/Del/2023 light of the order dated 05.06.2013 of the coordinate Bench in for AY 2012-13 and in for AY 2015- 16.

3.

On perusal of the record, we find that the above referred two appeals, for AY 2012-13 and for AY 2015-16, were earlier disposed of by order dated 27.11.2019 of the coordinate Bench wherein the coordinate Bench had remanded back the issues to the TPO to decide afresh after considering the evidences produced by the tax payer in view of the findings returned in the order dated 27.11.2019. The assessee had challenged this order dated 27.11.2019 before the Hon’ble High Court and, vide ITA 110/2021 and ITA 112/2021, order dated 21.02.2023, the Hon’ble High Court had set aside the order dated 27.11.2019 of the coordinate Bench and directed the Tribunal to decide the issue on merits and a direction was also given that the appeals of the assessee be decided not later than eight weeks from 21.02.2023. Consequently, by order dated 05.06.2023, the appeals No.7960/Del/2019 and 7961/Del/2019 for AYs 2012-13 and 2015-16 were decided by the coordinate bench by deleting the TP adjustments.

4.

We find that the assessee had preferred the appeals in hand on 01.03.2023 and has raised grounds on merits and the ground No.1 was raised as follows:-

ITAs No.582 & 583/Del/2023

“1. That on the facts and circumstances of the case and in law, the impugned assessment order along with the TPO order and DRP direction have become infructuous as they have been passed pursuant to the remand back order of the ITAT in (ITA No.7961/Del/2019 for AY 2015-16) which has been set aside by the Hon’ble High Court in (ITA No.112/2021 for AY 2015-16) vide order dated 21.02.2023.”

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