SIS LIVE vs. ASSISTANT COMMISSIONER OF INCOME TAX

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ITA/148/2016HC DelhiDLHC01042939201609 May 2016Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court set aside the ITAT's order and remanded the matter back to the ITAT for fresh adjudication on the Transfer Pricing adjustment issue.

What were the facts?

The ITAT did not adjudicate the Transfer Pricing adjustment issue as no addition was made by the AO. However, the AO subsequently passed a rectification order making the Transfer Pricing adjustment.

What were the issues?

Whether the ITAT should have adjudicated the Transfer Pricing issue when the AO had initiated rectification proceedings to make the adjustment.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

ITA No. 148 of 2016

Page 1 of 3

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI 43. +

ITA 148/2016

M/s. SIS LIVE

..... Appellant

Through: Ms. Rashmi Chopra, Advocate.

versus

ASSISTANT COMMISSIONER OF INCOME TAX ..... Respondent Through: Mr. Ashok K. Manchanda, Senior Standing counsel with Ms. Vibhooti Malhotra, Advocate.

CORAM: JUSTICE S. MURALIDHAR JUSTICE VIBHU BAKHRU

O R D E R %

09.05.2016

CM No. 17388/2016 (for early hearing) 1. With the consent of the parties, the appeal itself is taken up for hearing today.

2.

The application is disposed of.

ITA No. 148/2016 3. This appeal under Section 260A of the Income Tax Act, 1961 (‘Act’) is directed against the order dated 2nd December, 2015 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No. 1313/Del/2015 for the Assessment Year (‘AY’) 2011-12.

ITA No. 148 of 2016

Page 2 of 3

4.

The issue concerning the Transfer Pricing adjustment was not adjudicated by the ITAT in the impugned order on the ground that no addition has been made in computing the total income of the Assessee. It is not in dispute that the Assessing Officer (‘AO’) had in fact set in motion rectification proceedings for the purposes of adjustment on account of the Transfer Pricing issue. Even before the ITAT gave the impugned order, on 26th November 2015 an order of rectification has been passed by the AO making the Transfer Pricing Adjustment for the purposes of computing of income.

5.

The short prayer, therefore, is that the impugned order of the ITAT should be set aside and the matter should be remanded to the ITAT for deciding the issue of Transfer Pricing adjustment.

6.

In view of the fact that the ITAT had declined to adjudicate the Transfer Pricing issue because no addition has been made by the AO and considering that the AO passed a rectification order on 26th November 2015 making an adjustment on the Transfer Pricing issue, the Court sets aside the impugned order of the ITAT dated 2nd December 2015 and remands the appeal being ITA No. 1313/Del/2015 to the ITAT for a fresh adjudication on the Transfer Pricing adjustment issue in accordance with law.

7.

The appeal will now be listed before the ITAT on 1st June 2016. The ITAT is requested to dispose of the appeal within a period of three months thereafter.

8.

The present appeal is disposed of in the above terms.

ITA No. 148 of 2016

Page 3 of 3

9.

The date already fixed stands cancelled. Order dasti.

S. MURALIDHAR, J

VIBHU BAKHRU, J MAY 09, 2016 dn

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