DCIT, CIRCLE- 19(1), NEW DELHI V. RELAXO FOOTWEAR LTD., DELHI

MA 13/DEL/2024

AI Insights

The case involves the Deputy Commissioner of Income Tax (DCIT), Circle-19(1), New Delhi as the appellant and Relaxo Footwear Ltd as the respondent. The dispute centers on the transfer pricing adjustment of \\u20b991,04,673 and an additional \\u20b927,31,402 concerning specified domestic transactions under section 92BA of the Income Tax Act for the Assessment Year 2016-17. Initially, the Tribunal had disallowed these adjustments based on a misinterpretation of the statutory provisions following the omission of section 92BA(i) by the Finance Act, 2017. However, upon the revenue's application for a recall, the Tribunal recognized the error and recalled the earlier order, setting a new date for the main appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713148 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Assessment Year: 2016-2017
• Other Referred Cases: PCIT Vs. Texport Overseas Private Limited
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: INDU BALA SAINI
• Assessee Lawyers: VED JAIN
• Keywords: Transfer pricing

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER MA 13/Del/2024 (In ITA No.590/Del/2021 (Assessment Year: 2016-17) DCIT, Circle-19(1), New Delhi Vs. Relaxo Footwear Ltd, Plot No. 10, Aggarwal City Square Manglam Place, Sector-3, New Delhi (Appellant) (Respondent) PAN: AAACR0259D Assessee by : Shri Ved Jain, Adv Shri Aman Garg, CA Smt Bulbul Singhal, CA Revenue by: Ms. Indu Bala Saini, Sr. DR Date of Hearing 27/06/2025 Date of pronouncement 31/07/2025 O R D E R PER M. BALAGANESH, A. M.: 1. By virtue of this miscellaneous application, the revenue seeks to recall the order passed by the tribunal in ITA No. 590/Del/2021 dated 20.07.2023 for Assessment Year 2016-17 wherein it was held that transfer pricing adjustment of ₹91,04,673/- and further addition of Rs. 27,31,402/-, which is in consonance of the same could not be made in respect of specified domestic transaction u/s 92BA of the Act. 2. We have heard the rival submissions and perused the material available on record. We find that the aforesaid decision was taken by this Tribunal by placing reliance on the decision of the Hon’ble Karnataka High Court in the case of PCIT Vs. Texport Overseas Private Limited reported in Printed from counselvise.com MA 13/Del/2024 Relaxo Footwear Ltd Page | 2 271 taxman 170 wherein it was held that clause (i) of section 92BA having been omitted by the Finance Act, 2017 w.e.f. 01.04.2017 from the statute, the resultant effect would be that it had never been passed and hence the decision taken by the ld AO under the effect of section 92BA of the Act and reference made to the ld TPO u/s 92CA of the Act was invalid and bad in law. The revenue in its MA application states that the transaction entered by the assessee falls within the ambit of Section 92BA(v) of the Act. We find that the transfer pricing adjustment has been made only in respect of transfer of some finished goods from non-eligible unit to eligible unit in the context of provisions of section 80IC of the Act. This as rightly pointed out by the revenue falls in section 92BA(v) of the Act. Only the provision of section 92BA(i) has been omitted from the statute w.e.f. 01.04.2017. Hence, we hold that the mistake in the order of the tribunal has been rightly brought to the knowledge of this tribunal by the revenue warranting recalling of the order passed by this tribunal. Hence, we deem it fit to recall this order passed by the Tribunal and fix the main appeal for hearing on 30.09.2025. Parties are informed in the open court and no fresh notice of hearing would follow. 3. In the result, the miscellaneous application of the revenue is allowed. Order pronounced in the open court on 31/07/2025. -Sd/- -Sd/- (ANUBHAV SHARMA) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 31/07/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) Printed from counselvise.com MA 13/Del/2024 Relaxo Footwear Ltd Page | 3 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "