CNH INDUSTRIAL (INDIA) PRIVATE LIMITED,DELHI V. INCOME TAX OFFICER AND THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(2), DELHI

ITA 688/DEL/2025

AI Insights

The case involves CNH Industrial (India) Pvt. Ltd, which appealed against the final assessment order passed by the Income Tax Officer under sections 144, 144C(13), and 144B of the Income Tax Act, 1961. The appeal was primarily concerned with the timeliness of the final assessment order in relation to the procedural directives issued by the Dispute Resolution Panel (DRP) and the Transfer Pricing Officer (TPO). The Tribunal examined whether the final assessment order was passed within the statutory time limits following the DRP's directions. The Tribunal found that the final order was indeed passed beyond the permissible time frame, leading to the allowance of the assessee's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714756 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Other Referred Cases: Nikon India Limited V. ACIT, Syniverse Technologies Services (India) Pvt Ltd, Canon India Ltd
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT KUMAR SINGH
• Assessee Lawyers: MAJOJ PARDARSANI
• Keywords: Set aside; Transfer pricing
• Section: 144

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No.688/Del/2025 (Assessment Year: 2021-22) & SA 74/Del/2025 (In ITA No.688/Del/2025) (Assessment Year: 2021-22) CNH Industrial (India) Pvt. Ltd, Level-4, Rectangle-1, D4 District Center, Commercial Complex Saket, South Delhi, Delhi Vs. Income Tax Officer, DCIT, Circle-4(2), New Delhi (Appellant) (Respondent) PAN: AAACI3922Q Assessee by : Shri Majoj Pardarsani, AR Ms. Deepanshi Agarwal, AR Revenue by: Shri Amit Kumar Singh, Sr. DR Date of Hearing 04/08/2025 Date of pronouncement 08/08/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The Assessee CNH Industrial (India) Pvt. Ltd, (hereinafter referred to as ‘assessee) by filing the present appeal sought to set aside the impugned order dated 03.12.2024 passed by the Assessing Officer (AO) under section 144C r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 (for short ‘the Act’) inconsonance with the order passed by the Dispute Resolution Panel (DRP) dated 28.09.2024 u/s 144C(5) and order passed by Transfer Pricing Officer (TPO) under section 92CA(3) dated 19.10.2022 for AY 2021-22. Printed from counselvise.com ITA No.688/Del/2025 SA 74/Del/2025 CNH Industrial (India) Pvt. Ltd Page | 2 2. The first issue to be decided in this appeal is as to whether the final assessment order framed by the AO u/s 144 read with section 144C(13) read with section 144B of the Act on 03.12.2024 could be construed as barred by limitation in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the material available on record. In the instant case, the draft assessment order was passed by the ld AO on 29.12.2023. Against the draft assessment order, the assessee filed objections before the ld Dispute Regulation Panel (DRP). The ld DRP issued directions u/s 144C(5) of the Act on 28.09.2024. The assessee received the said direction by email from ld DRP on 28.09.2024. The ld TPO passed an order giving effect to the directions of the ld DRP on 24.10.2024. There is absolutely no dispute with regard to the dates on which the aforesaid orders were passed and served on both the parties. As per the provisions of section 144C(13) of the Act, the final assessment order should be passed by the ld AO within one month from the end of the month in which directions u/s 144C(5) of the Act of the ld DRP were received by the ld AO. The directions issued u/s 144C(5) of the Act by the ld DRP, were sent by email on 28.09.2024 itself, hence the date of receipt of the said directions of the ld DRP by the ld AO would be 28.09.2024. Accordingly, the due date for passing the final assessment order for the ld AO as per section 144C(13) of the Act would be 31.10.2024, whereas the final assessment order in the instant case has been framed on 03.12.2024, which is barred by limitation. Similar issue had cropped up before the coordinate bench of the Delhi Tribunal in the case of Nikon India Limited V. ACIT in ITA No. 1628/Del/2022, Syniverse Technologies Services (India) Pvt Ltd in ITA No. 391/Del/2022 dated 21.08.2024, Canon India Ltd in ITA No. Printed from counselvise.com ITA No.688/Del/2025 SA 74/Del/2025 CNH Industrial (India) Pvt. Ltd Page | 3 1940/Del/2024, among others. In view of the aforesaid observations and respectfully following the judicial precedents, we hold that the final assessment order passed u/s 144 read with section 144C(13) on 03.12.2024 is barred by limitation. Accordingly, Ground No. 1 raised by the assessee is allowed. 4. Since the relief is granted to the assessee on this preliminary ground No. 1, the other grounds need not be adjudicated and they are left open. 5. In the result, the appeal of the assessee is allowed and stay Petition of the assessee is hereby dismissed as infructuous. Order pronounced in the open court on 08/08/2025. -Sd/- -Sd/- (YOGESH KUMAR U.S.) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:08/08/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "