Assessee's Appeals Partly Allowed, Transfer Pricing & Capitalization Issues Referred Back

The appeals by Assessee against the order of Learned Commissioner of Income Tax (Appeals) for Assessment Years 2012-13, 2013-14, 2014-15, and 2016-17 were partly allowed. The issues related to transfer pricing and capitalization of expenses were referred back to the Commissioner for fresh orders. The appeals could not be fully decided until the capitalization dispute was resolved. All grounds of appeal were considered disposed of, and the appeals were treated as partly allowed for statistical purposes.

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Issues involved:
The appeals by Assessee against the common order dated 27/02/2019 of Learned Commissioner of Income Tax (Appeals)-1, Gurgaon for Assessment Years 2012-13, 2013-14, 2014-15, and 2016-17 respectively.

AY 2012-13:
1. Challenge to the order passed by Ld. CIT(A) u/s 250 of the Act.
2. Disallowance of depreciation on international transaction of development expenses.
3. Dispute regarding arm's length principle and disallowance of depreciation.
4. Interpretation of grounds of appeal and dismissal of appeal.
5. Non-adjudication of penalty proceedings u/s 271(1)(c).

AY 2013-14:
1. Challenge to the order passed by Ld. CIT(A) u/s 250 of the Act.
2. Disallowance of depreciation on international transaction of development expenses.
3. Dispute regarding arm's length principle and disallowance of depreciation.
4. Interpretation of grounds of appeal and dismissal of appeal.
5. Non-adjudication of penalty proceedings u/s 271(1)(c) and interest charged u/s 234C.

AY 2014-15:
1. Challenge to the order passed by Ld. CIT(A) u/s 250 of the Act.
2. Disallowance of depreciation on international transaction of development expenses.
3. Dispute regarding arm's length principle and disallowance of depreciation.
4. Interpretation of grounds of appeal and dismissal of appeal.
5. Non-adjudication of interest charged u/s 234A and 234B.

AY 2016-17:
1. Challenge to the order passed by Ld. CIT(A) u/s 250 of the Act.
2. Disallowance of depreciation on international transaction of development expenses.
3. Dispute regarding arm's length principle and disallowance of depreciation.
4. Interpretation of grounds of appeal and dismissal of appeal.

The issues in these appeals are related to the transfer pricing issue arising in the case of the assessee for AY 2011-12. The dispute regarding capitalization of expenses in AY 2011-12 was restored to the file of the Ld. CIT(A) by the Co-ordinate Bench of ITAT, Delhi. The present appeals cannot be decided until the dispute regarding capitalization of expenses is resolved. Therefore, the issues in dispute in the present appeals are restored to the file of the Ld. CIT(A) for fresh order in accordance with law.

All grounds of appeal are treated as disposed off in accordance with the directions. For statistical purposes, all the four appeals are treated as partly allowed.

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