Loading judgment…
Facts
The assessee filed an appeal against the AO's order concerning assessment year 2021-22, challenging the transfer pricing adjustment for import of finished goods and marketing support services. The assessee sought to withdraw the appeal as these issues were covered by an Advance Pricing Agreement (APA).
Held
The Tribunal noted that the issues agitated in the appeal were already settled by the Advance Pricing Agreement (APA). Therefore, the assessee's request for withdrawal of the appeal was allowed.
Key Issues
Whether an appeal can be withdrawn if the issues raised are covered by an Advance Pricing Agreement (APA).
Sections Cited
143(3), 144C(13), 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘i’ NEW DELHI
O R D E R PER MANISH AGARWAL, AM:
This appeal is filed by the assessee against the order of AO dated 22.10.2024 passed u/s 143(3) r.w.s 144C(13) read with section 144B of the Income Tax Act, 1961 (“the Act” in short) for Assessment Year 2021-22.
Before us, Ld.AR submits that in the appeal of the assessee, Ground No.2 taken wherein order passed u/s 143(3).144C(13) r.w.s. 144B of the act is challenged on the grounds of limitation. Ld.AR submits that Revenue has sought adjournment on this ground and therefore, appeal of the assessee is adjourned sine die as the matter is sub-judiced before Hon’ble Supreme Court. Ld.AR submits that assessee has given an undertaking that it will not press Ground No.2, challenging the issue of limitation raised in the appeal memo.
Ld.AR further submits that Advance Pricing Agreement (“APA”) have been concluded and signed on 21.02.2025 and all the issues of international transactions i.e. import of finished goods and provision of marketing support services are covered by the said Agreement. Copy of the same is produced before us. It is thus, requested to withdraw the appeal as the issues stand covered by APA.
On the other hand, Ld. Sr. DR for the Revenue has not objected to the request made by the assessee.
Heard the contentions of both the parties and perused the material available on record. From the perusal of grounds taken by the assessee, we find that assessee has challenged the transfer pricing adjustment towards the cost of import of finished goods and marketing support services. From the perusal of para 3 of APA, it is seen that this agreement covered following three transactions:-
(i) Import of finished goods; (ii) Provision of marketing support services; and (iii) Reimbursement of services. 6. Since all the three issues agitated by the assessee in the present appeal, have already been settled in APA therefore, we allow the request of the assessee for withdrawal of the appeal. Accordingly, appeal of the assessee is dismissed as withdrawn.
In the result, the appeal of the assessee is dismissed.
Order pronounced in the open Court on 31.10.2025.