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Facts
The assessee appealed against an assessment order passed by the Income Tax Officer, which was in compliance with DRP directions. The TPO, in giving effect to DRP directions, computed transfer price adjustments at Nil, whereas a prior order had calculated it at over Rs. 33 crore. The AO had not considered the TPO's Nil adjustment order when passing the final assessment.
Held
The Tribunal directed the Assessing Officer (AO) to consider the TPO's order giving effect to DRP directions and re-compute the assessee's income. Since the TPO made no adjustment, there was no grievance for the assessee.
Key Issues
Whether the AO considered the TPO's order while passing the final assessment order, especially when the TPO's order resulted in no transfer price adjustment?
Sections Cited
144C(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘I’: NEW DELHI
Before: SHRI SUDHIR PAREEK & SHRI MANISH AGARWAL
(ASSESSMENT YEAR 2020-21) Richemont India Private Dy. CIT, Limited, Circle-19(1), Unit No.6B, 6th Floor, ARIA Vs. New Delhi. Tower, Hotel J.W. Mariott, Aerocity Asset Area-4, Hospitality District, Delhi-110037. PAN-AADCR9256R (Appellant) (Respondent) Assessee by Ms. Reema Malik, Adv. Department by Shri Dharm Veer Singh, CIT-DR Date of Hearing 28/08/2025 Date of Pronouncement 28/08/2025 O R D E R [ PER MANISH AGARWAL, AM: This appeal is filed by the assessee against the assessment order dated 18.06.2024 passed by the Income Tax Officer in compliance to the direction given by the DRP.
During the course of hearing, the Ld. AR of the assessee drew our attention to the order passed by the TPO dated 18.06.2024, giving effect to the directions of DRP u/s 144C(5) dated 21.05.2024. The TPO after considering the directions re-computed the transfer price Richemont India Pvt. Ltd. vs. DCIT adjustments at Nil as against Rs.33,95,93,805/- computed in the order passed earlier by the TPO dated 28.09.2023. It is thus, submitted by the Ld. AR there remained no adjustment after passing the order of TPO giving effect to the directions of the DRP, therefore, necessary directions be given to the AO for taking the said order on record as the AO has passed the final assessment order without considering the aforesaid order of the TPO dated 18.06.2024.
On the other hand, the Ld. CIT-DR stated that it is a factual aspect which needs to be verified by the AO.
Heard both parties. From the perusal of the order of Ld. TPO dated 18.06.2024 giving effect to the directions given by the DRP, we find that TPO finally computed transfer price adjustments at Nil and the AO has not considered this order of TPO while passing the final assessment order on very same day i.e. on 18.06.2024, against which the assessee is in appeal before us.
In view of these facts, we hereby direct the AO to consider the order giving effect and re-compute the income of the assessee. It is further seen that TPO has made no adjustment, therefore, there remained no grievance to the assessee. Accordingly, the grounds of appeal of the assessee are remand to the file of AO with the direction to pass consequent order for making necessary amendment in the total income based on TPO order dated 18.06.2024.