TaxTMI 
TaxTMI 
2026 (4) TMI 1471
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....enchmarking the management fees as per the provisions, u/s 92C(1) of the Income Tax Act, 1961. 4. The Ld. DRP/AO erred in disregarding the transfer pricing study report and the information documents and clarification provided by the assessee to evidence the arm's length nature of management fees. 5. The Ld. TPO erred in arriving ALP as Rs. Nil by CUP Method as the Most Appropriate Method without providing the basis for application of methodology. 6. Without prejudice to the above the Ld. DRP/AO failed to appreciate the fact that the management fee of INR Rs. 1,55,84,878/- was noy debited to the P&L Account as the same was capitalized during the year under consideration. 7. Any other ground that may be urged at the time of hearing with the prior approval of the Hon'ble Tribunal. 3. An application has moved by the assessee to raise the additional ground of appeal under rule 11 of the Income Tax (appellate Tribunal) Rules 1963 and stated that the final assessment order dated 31-07-2022 passed by the Ld. AO u/s 143(3) read with section 143(3) is barred by the time limitation. He further stated that tribunal has power to admit any additiona....
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....he direction of the Ld. TPO the assessee filed the appeal before the Hon'ble DRP who by order dated 30-12-2021 confirmed the order of the Ld. TPO and directed the AO to incorporate the findings of the Panel. In the compliance of the Hon'ble DRP direction the Assessing Officer framed the Assessment order on 31-07-2022 after making the addition of Rs. 1,55,84,878/-. Aggrieved, by the action of the AO the assessee preferred this appeal before the tribunal. 5. The ld. AR of the assessee raised the legal ground no 8 and submitted that the assessment order dated 31-07-2022 passed by the Ld. AO under section 143(3) r.w.s. 143 (3) of the Act is time barred. He submitted that as per the provisions of section 144C(13) of the Act the Ld. AO should have passed the assessment order till 31-01-2022 from the receiving the direction of the Hon'ble DRP, which was received on 30-12-2021. Reliance is placed on the decision of Hon'ble Jurisdictional High Court in case of PCIT v. Fiberhome India (P.) Ltd [2024] 159 taxmann.com 772(Delhi). The written submission for the assessee as under: BEFORE THE HON'BLE INCOME TAX APPELLATE TRIBUNAL, NEW DELHI BENCH 'H' In the ma....
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....) Upon receipt of the directions issued under sub-section (5), the Assessing Officer shall, in conformity with the directions, complete, notwithstanding anything to the contrary contained in section 153 or section 153B, the assessment without providing any further opportunity of being heard to the assessee, within one month from the end of the month in which such direction is received." 5.3. Hence, the Ld. AO was required to complete the assessment in accordance with the aforesaid provision of section 144C(13) of the Act within one month from the end of the month in which the DRP directions were received. 5.4. The relevant sequence of events is summarized hereunder for the sake of ready reference: S. No. Particular/ Event Date Page referencing 1 Date of receiving DRP directions 30 December 2021 Refer Exhibit-1 containing Ld. AO's confirmation in response to RTI application 2 Time Limit to pass final assessment order 31 January 2022 As per section 144C(13) of the Act 3 Actual date of passing of final assessment order 31 July 2022 Refer Pg. 4 of appeal set. 6. Therefore, based on the aforesaid sequence of ....
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....ections to enable the AO to complete the assessment in accordance with section 144C(5) of the Act. 15. In terms of sub-section (13) of section 144C of the Act, the AO is mandated to complete the assessment "in conformity with the directions" as framed by the DRP. That very provision commands the AO to complete the assessment within one month from the end of the month in which such a direction is received. 16. This is evident from Section 144C of the Act which is extracted hereinbelow :- ** ** ** 17. As is manifest from a reading of sub-section (13) of section 144C of the Act, the AO is not accorded any discretion in the framing of an order of assessment once directions have come to be framed by the DRP. In fact, the provision requires the AO to frame an order of assessment in conformity with those directions and without providing any further opportunity of hearing to the assessee. This principle of law has been affirmed by the Bombay High Court in the aforenoted paragraphs of Vodafone Idea and in Shell India Markets Private Limited v. Additional Commissioner of Income Tax Officer, National Faceless Assessme....
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.... thus manifest that as per the provisions of E-as, 2019, all orders, notices and decisions have to be necessarily uploaded on the ITBA portal and as part of the larger faceless assessment regime which now holds the field. The uploading of the directive of the DRP on the ITBA portal would thus constitute valid and sufficient service and the period of limitation as prescribed in section 144C(13) of the Act would be liable to be computed bearing that crucial date in mind. Once the aforesaid position becomes clear, it is evident that the order of assessment, if at all could have been framed lastly by 31 July 2022. There has thus been an abject failure on the part of the first respondent to comply with the mandatory timelines as incorporated in the aforenoted provisions. Accordingly, the writ petition is liable to be allowed and the impugned order of assessment and the consequential penalty proceedings are thus liable to be set aside on this short score alone." 4. We, consequently, find no merit in the instant appeal and the same shall stand dismissed." 8. Reliance is also placed on the decision of the jurisdictional High Court in case of Louis Dreyfus Company India (P....
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....ave become academic and keep them open for adjudication. 8. In the result the appeal of the assessee is allowed. Order pronounced in the open court on 17.04.2026. ============= Document 1 OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX, RANGE -10, 4"" FLOOR, ROOM NO. 405, C.R. BUILDING, L.P. ESTATE, NEW DELHI-110002 Email id: delhi.acit10.osd'a incometax.gov.in F. No. ACIT(OSD)-R-10/Delhi/RTI/2025-26/96 Dated: 14.07.2025 Name of the Appellant Sh. Arunprasadh Mohan, Finance Head & Principal Officer M/s Ghanpur Solar pvt. Ltd., First Floor, D-2, Southern Park Building, Saket, New Delhi-110017 Date of Order 14.07.2025 Order u/s 7(1) of the RTI Act, 2005. reg. Please refer to your RTI application dated 23.05.2025 which was received to this office on 30.06.2025 through offline mode, being forwarded by the Olo The ACIT, Circle- 10(1), Delhi. 2. As per your RTI application, you have requested to provide the information about details of receipts of DRP directions for AY-2017-18 in the case of M/s Ghanpur Solar Pvt. Ltd. (PAN: AAGCG1692R) against which final assessment order was completed on 31.07.2022. 3. In this regard the complete details of....