CACI AIRCON PRIVATE LIMITED,GURUGRAM V. ASSESSMENT UNIT, INCOME TAX DEPARTMENT AND JAO WARD 1(3), GURGAON, ASSESSMENT UNIT, INCOME TAX DEPARTMENT

SA 58/DEL/2026

AI Insights

The case involves CACI Aircon P. Ltd., which filed an application seeking a stay on the recovery of an outstanding tax demand for the Assessment Year 2022-23. The demand arose from issues related to transfer pricing adjustments. The Dispute Resolution Panel (DRP) had previously directed the Transfer Pricing Officer (TPO) to adjust the assessee's working capital in accordance with OECD Guidelines, which the TPO allegedly failed to comply with. The assessee argued that they had provided all necessary data to the TPO, while the department contended that complete details of comparable companies were not provided. After hearing both parties, the Tribunal decided to grant a stay on the recovery of the demand, contingent upon partial payment by the assessee.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839812 (ITAT-DELHI)
• Duration Of Justice: 29 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 27-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2022-2023
• Appeal Filed On: 29-01-2026
• Laws Referred To: OECD Guidelines
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SINGH SHARMA
• Keywords: Transfer pricing; Reasonable cause; Application of stay
• Section: 2

Judgement Text

" आयकर अपीलीय अधिकरण धिल्ली पीठ “एच”, धिल्ली श्री धिकास अिस्थी, न्याधयक सिस्य एिं श्री एम. बालागणेश, लेखाकार सिस्य क े समक्ष IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI M. BALAGANESH, ACCOUNTANT MEMBER SA No. 58/Del/2026 (Arising out of ITTPA No. 15/Del/2026, A.Y 2022-23) CACI Aircon P. Ltd., Narshingpur Kherki, Delhi Jaipur Highway, Sikenderpur, B.O Badha (113), Gurugram, Haryana 122004 PAN: AAGCT-8491-H ...... आवेदक/Applicant बनाम Vs. Assessment Unit, Income Tax Department & JAO Ward 1(3), Gurgaon, Haryana ..... प्रधििािी/Respondent आवेदक/Applicant by : S/Shri Nitin Narang & Amit Arora, Chartered Accountants प्रधििािीद्वारा/Respondent by : Shri Vikram Singh Sharma, SR. DR सुनिाई की धिधि/ Date of hearing : 27/02/2026 घोषणा की धिधि/ Date of pronouncement : 27/02/2026 आिेश/ORDER PER VIKAS AWASTHY, JM: This application has been filed by the assessee seeking stay on recovery of outstanding demand of Rs.2,89,25,720/- for AY 2022-23. 2. The ld. Counsel for the assessee submitted that the Dispute Resolution Panel (DRP), vide its directions dated 27.11.2025 had instructed the Transfer Pricing Officer (TPO) to grant working capital adjustment to the assessee in accordance with the OECD Guidelines. It was submitted that the assessee had furnished all the relevant data before Printed from counselvise.com 2 SA No.58/DEL/2026 the TPO. However, while passing the order giving effect to the DRP’s directions, the TPO has not complied with the directions of the DRP. The ld. Counsel drew our attention to the TPO’s order dated 28.11.2025 (at page 284 of the paper book), wherein the TPO has acknowledged that the Annual Reports of the comparable companies were provided by the assessee. He, therefore, prayed for stay of recovery of outstanding demand on the ground that the TPO has failed to comply with directions by the DRP. 3. Per contra, Shri Vikram Singh Sharma representing the department vehemently opposed the Stay Application. The ld. DR submits that the assessee has not provided complete details of the comparable companies as directed by the DRP. He pointed that at page 284 of the paper book, the assessee has only given details of five companies, the details of remaining six companies were not provided by the assessee to the TPO. 4. Both sides heard. Considering entire facts of the case, we are of considered view that the benefit of stay can be allowed to the assessee subject to payment of 20% of the outstanding demand for AY 2022-23. The assessee shall pay 20% of the outstanding demand for impugned assessment year in two equal installments, payable on or before 15th March 2026 and 30th March 2026. Subject to payment of above amount, the recovery of outstanding demand shall remain stayed for 180 days from the date of this order or till the disposal of appeal, whichever is earlier. 5. The Registry is directed to list the appeal for hearing on 07.04.2026. Since, the date of hearing of appeal has been announced in the open court in presence of both sides, issuance of separate notice of hearing to the parties is dispensed with. 6. The assessee shall furnish paper book, if any on or before the date of hearing of appeal, with an advance copy to the opposite sides in accordance with ITAT Rules. Printed from counselvise.com 3 SA No.58/DEL/2026 7. The assessee shall not seek adjournment on the date fixed for hearing, without their being any reasonable cause. 8. In the result, Stay Application of the assessee is allowed in the terms aforesaid. Order pronounced in the open court on Friday the 27th day of February, 2026. Sd/- Sd/- (M. BALAGANESH) (VIKAS AWASTHY) लेखाकार सदस्य/ACCOUNTANT MEMBER न्यायिक सदस्य/JUDICIAL MEMBER धिल्ली / Delhi, धिनांक/Dated 27/02/2026 NV/- प्रतिलिपि अग्रेपििCopy of the Order forwarded to : 1. अपीलािी/The Appellant , 2. प्रधििािी/ The Respondent. 3. The PCIT/CIT(A) 4. धिभागीय प्रधिधनधि, आय.अपी.अधि., यदल्ली /DR, ITAT, धिल्ली 5. गार्ड फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "