2026 (6) TMI 909

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....& Order No: ITBA/NFAC/S/250/2025-26/1080810137(1), which in turn has arisen from the assessment order dated 15.12.2023 passed by the learned Assessing Officer, Assessment Unit, Income Tax Department u/s. 143(3) r.w.s 144C(3) r.w.s.144B of the 1961 Act in DIN: ITBA/AST/S/143(3)/2023-24/1058810504(1). 2. Brief facts of the case are that the assessee filed return of income on 25th February, 2022, showing total income at Rs. 1,16,69,960/-. The assessee's case was selected by Revenue for framing scrutiny assessment under CASS. During the course of assessment proceedings, statutory notices were issued by the AO to the assessee from time to time u/s. 143(2) and 142(1) of the Act, as are recorded in the assessment order. The assessee company is ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....excess interest paid by the assessee to its AE, as was proposed by ld. TPO and in the draft assessment order. The assessee instead chose to file first appeal with ld. CIT(A). 3. Aggrieved, the assessee filed first appeal with Ld. CIT(A), wherein Ld. CIT(A), NFAC, Delhi vide appellate order dated 17.09.2023 passed u/s. 250 of the 1961 Act confirmed the additions as were made by ld. AO in its assessment order, and upheld the assessment order passed by the AO, wherein operative portion of ld. CIT(A) appellate order reads as under:_ "The calculation of downward adjustment is shown below:- Further, external CUP using PLR + 300 bps is less preferable to the internal CUP using the own AE's interest rate. Further, in this c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assed by ld. CIT(A), NFAC, Delhi in contravention to notification issued by CBDT No.113/2022/F. No.279/Misc./66/2014-ITJ(Pt.) dated 13th October, 2022, wherein the CBDT has notified that the cases where order has been passed by Transfer Pricing Officer ('TPO'), shall be taken up by specified Appellate Authority as per the column (2) of Schedule to the Notification i.e., Commissioner of Income-tax (Appeals),Delhi-44, as the Transfer Pricing Order u/s. 92CA(3) was passed by TPO being DC.ACIT-TP (1)(1)(1),Delhi. The copy of letter filed in this context is reproduced hereunder. The copy of said notification is filed by the assessee and is placed on record in file. It was prayed by ld. Counsel for the assessee that the appellate order dated 1....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ellate order was passed on 17th September, 2025. There is clearly breach of principles of natural justice. Further as per notification issued by CBDT, the ld. CIT(A), Delhi-44 was duly authorized to take up and adjudicate appeals arising from Transfer Pricing Order passed by TPO-1, Delhi, but in the instant case, the ld. CIT(A), NFAC, Delhi passed the order, which is not in accordance with the notification dated 13th October, 2022 issued by CBDT. Further, both the parties are ad-idem that the matter can be restored back to the file of ld. CIT(A) for fresh adjudication on merits in accordance with law, in accordance with the instructions/notification issued by CBDT. Thus, Considering the facts and circumstances of the case, materials placed ....