M/s Dabur Pharma Ltd., Gurgaon V. DCIT, New Delhi

ITA 5326/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7544 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I1
• Next Hearing Date: 11-05-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 27-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRENDRA KUMAR
• Assessee Lawyers: HIMANSHU SHEKHAR SINHA; M D FAHAD KHALID ADV S
• Keywords: Related party transaction; Transfer pricing; Opportunity of being heard; International transaction; Bad and doubtful debts
• Section: 92C; 143(3); 115JB; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH I - 1 , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SMT. BEENA PILLAI , JM IT A NO. 5326 /DEL/201 3 : ASSTT. YEAR : 2006 - 07 DABUR PHARMA LTD. (NOW KN OWN AS FRESENIUS KABI ONCOLOGY LTD.), PLOT NO. 11, EXCHELON INSTITUTIONAL AREA, SECTOR - 32, GURGAON - 122001, HARYANA VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 10(1), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A ABCD7720L ASSESSEE BY : SH. HIMANSHU SHE KHAR SINHA & M D. FAHAD KHALID , ADV S . REVENUE BY : SH. AMRENDRA KUMAR, CIT DR DATE OF HEARING : 11 .05 .201 6 DATE OF PRONOUNCE MENT : 30 .05 .201 6 ORDER PER N. K. SAINI, AM : THIS IS AN APPEAL B Y THE ASSESSEE AGAINST THE ORDER DATED 24.07.2013 PASSED BY THE AO U/S 143(3) R.W.S. 144C OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) . 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THAT ON THE FACTS AND CIRCUMSTANCE OF TH E CASE, THE ORDER PASSED BY THE LD. ASSESSING OFFICER (AO) IS BAD IN LAW. I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 2 2. THAT ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE ORDER PASSED BY THE LD. AO IS BARRED BY LIMITATION, SINCE THE LD. AO FAILED TO PASS THE IMPUGNED ORDER WITH THE TIME LIMIT STIPULATED UNDER SECTION 144C(13) OF THE INCOME - TAX ACT, 1961 (THE ACT). 3. THAT ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. AO/ LD. TRANSFER PRICING OFFICER (TPO)/ LD. DISPUTE RESOLUTION PANEL (DRP) ERRED IN MAKING AN ADDITION OF RS. 85,64,000 TO THE INCOME OF THE APPELLANT, BY RE - COMPUTING THE ARM'S LENGTH PRICE OF THE INTERNATIONAL TRANSACTIONS. 4. THAT ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. AO/LD. TPO/LD. DRP ERRED IN BENCHMARKING THE INTERNATIONAL TRANS ACTIONS PERTAINING TO PURCHASES FROM / SALES TO ASSOCIATED ENTERPRISE (AE) BY IGNORING THE APPLICABILITY OF I NTERNAL TRANSACTIONAL NET MARGIN METHOD (TNMM). 5. WITHOUT PREJUDICE TO GROUND 4 ABOVE, ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. AO/LD. TPO/LD. DRP ERRED IN BENCHMARKING THE INTERNATIONAL TRANSACTIONS PERTAINING TO PURCHASES FROM / SALES TO AE BY: A. ERRONEOUSLY CONSIDERING THE OPERATING PROFIT MARGIN OF THE AE AS WELL AS THE NON - AE TRANSACTIONS AS THE TESTED PARTY'S MARGIN (IN STEAD OF CONSIDERING THE MARGINS ONLY FROM THE AE SEGMENT); I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 3 B. REJECTING, BASED ON SUBJECTIVE GROUNDS AND PRESUMPTIONS, THE COMPARABILITY ANALYSIS CONDUCTED BY THE APPELLANT FOR DETERMINING THE ARM'S LENGTH PRICE, WITHOUT SPECIFICALLY POINTING OUT FUNCTIO NAL NON - COMPARABILITY. HEREIN, THE LD. AO/LD. TPO/LD. DRP FAILED TO APPRECIATE THAT THE FILTERS APPLIED BY THE APPELLANT WERE SELF - EXPLANATORY AND WERE IN ACCORDANCE WITH THE FUNCTIONS PERFORMED, ASSETS UTILIZED AND RISKS BORNE (FAR); C. NOT APPLYING THE EXPORT SALES CRITERION/FILTER AS A PERCENTAGE TO TOTAL SALES; D. MODIFYING AND APPLYING THE TURNOVER CRITERION/FILTER WITHOUT AN UPPER LIMIT; E. APPLYING THE RELATED PARTY TRANSACTIONS CRITERION/FILTER AT 25% OF TOTAL SALES; AND F. CONSIDERING COMPANIES , WHICH ARE FUNCTIONALLY NOT COMPARABLE TO THE APPELLANT 6. THAT ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. AO/LD. TPO/LD. DRP ERRED IN NOT CONSIDERING THE COMPARABLE UNCONTROLLED PRICE (CUP) DATA FOR BENCHMARKING THE INTERNATIONAL TR ANSACTION PERTAINING TO SALE OF PACLITAXEL DRUG TO THE AE. 7. WHILE HOLDING THAT BENCHMARKING OF INTEREST ON FOREIGN LOAN HAS TO BE COMPARED WITH LIBOR, ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. AO/LD. TPO/LD. DRP ERRED IN BENCHMARKI NG THE INTERNATIONAL TRANSACTIONS I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 4 PERTAINING TO RECEIPT OF INTEREST FROM THE AE, BY ARBITRARILY ADDING A SPREAD OF 2% OVER THE INTEREST CHARGED BY THE APPELLANT IN AN AD - HOC MANNER (ON ACCOUNT OF NON - DESCRIPTIVE RISK FACTOR), WITHOUT ASSIGNING ANY REASONAB LE BASIS AND BY FAILING TO APPRECIATE THAT THE APPELLANT HAS ALREADY TAKEN A SPREAD OF 1.1% OVER AND ABOVE THE LIBOR; 8. WITHOUT PREJUDICE TO GROUND 7 ABOVE, ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. AO/LD. TPO/LD. DRP ERRED IN BENCHMA RKING THE INTERNATIONAL TRANSACTIONS PERTAINING TO RECEIPT OF INTEREST FROM THE AE BY: A. NOT CONSIDERING INTERNAL CUP AVAILABLE WITH RESPECT TO THE INTEREST PAID ON THE LOAN AVAILED BY THE AE FROM ABN AMRO BANK; AND B. NOT CONSIDERING INTERNAL CUP AVAIL ABLE WITH RESPECT TO THE INTEREST .PAID BY THE APPELLANT TO THE INDIAN BANKS (ON PACKING CREDIT). THAT THE ABOVE GROUNDS ARE INDEPENDENT AND WITHOUT PREJUDICE TO EACH OTHER. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR VARY ANY OF THE ABOVE GROUNDS EITHER BEFORE OR AT THE TIME OF HEARING AS WE MAY BE ADVISED. THE ARGUMENTS TAKEN HEREINABOVE ARE WITHOUT PREJUDICE TO EACH OTHER. 3. AT THE VERY FIRST INSTANCE THE LD. COUNSEL FOR THE ASSESSEE ARGUED GROUND NO. 2 RELATING TO THE VALIDITY OF THE ASSESSM ENT ORDER PASSED BY THE AO BY STATING THAT THE SAME I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 5 WAS BARRED BY LIMITATION AS PER THE PROVISIONS OF SECTION 144C(13) OF THE ACT. 4 . FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE FILED THE E - RETURN OF INCOME ON 17.11.2006 DECL ARING AN INCOME OF RS.3,4 5,94,38 9/ - UNDER NORMAL PROVISIONS OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFER TO AS THE ACT) AND ADJUSTED BOOK PROFIT AMOUNTING TO RS.21,45,06,103/ - U/S 115JB OF THE ACT. THE SAID RETURN WAS PROCESSED U/S 143(1) OF THE ACT ON 19.11.2007. SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY. THE AO NOTICED THAT THE ASSESSEE ENTERED INTO FOREIGN TRANSACTIONS TOTALING TO RS. 5262.03 LACS, THEREFORE, THIS CASE WAS REFERRED TO THE TRANSFER PRICING OFFICER (TPO) FOR COMPUTATION OF ARM S LENGTH PRICE U/S 92CA OF TH E ACT. THE TPO MADE AN ADJUSTMENT OF RS.139.34 LACS TO THE ARM S LENGTH PRICE VIDE ORDER DATED 19.10.2009. THE AO PASSED THE DRAFT ASSESSMENT ORDER U/S 143(3) R.W.S. 144C OF THE ACT ON 26.11.2009. THE ASSESSEE RAISED THE OBJECTION S BEFORE THE DISPUTE RESOL UTION PANEL (DRP) - 1, NEW DELHI WHO VIDE ORDER DATED 02.07.2010 COMMUNIC ATED THE DIRECTION TO THE AO WHO PASSED ORIGINAL ASSESSMENT ORDER U/S 143(3) R.W.S. 144C OF THE ACT ON 09.08.2010. I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 6 5 . BEING AGGRIEVED THE ASSESSEE PREFERRED AN APPEAL TO THE ITAT IN IT A NO. 4556/DEL/2010 WHEREIN VIDE ORDER DATED 18.08.2011, THE CASE WAS RESTORED TO THE FILE OF THE LD. DR P FOR PASSING SPEAKING ORDER U/S 144C OF THE ACT. THE RELEVANT FINDINGS GIVEN BY THE ITAT IN THE ORDER DATED 18.08.2011 READ AS UNDER: 5. WE HAVE HEAR D BOTH THE SIDES AND ALSO GONE THROUGH THE ORDER OF THE DRP. THE LEARNED DRP HAS DEALT THE ISSUE AS UNDER: - 2.4 WE HAVE CONSIDERED THE ARGUMENTS OF THE ASSESSEE COMPANY. THE TPO HAS GIVEN DETAILED REASONS IN THE ORDER U/S 92CA(3) FOR COMPUTING THE ARM'S LENGTH PRICE OF THE INTERNATIONAL TRANSACTIONS. THE ASSESSEE COULD NOT JUSTIFY THE FILTERS APPLIED BY IT AND THE TPO HAS CARRIED OUT A FRESH SEARCH AND APPLIED LOGICAL FILTERS TO ARRIVE AT A COMPARABLE ON THE BASIS OF THE SAME HE HAS COMPUTED OP / OC AT 1 9.60%. IN THE MATTER OF CHARGING OF INTEREST @ 6% ON THE LOAN OF RS.46.37 CRORES FROM ITS AE, THE ASSESSEE COULD NOT DISCLOSE THE DETAILS OF CUP. IT WAS NOTICED THAT THE ASSESSEE HAS ALSO TAKEN LOAN FROM BANKS TO THE EXTENT OF RS.52.68 CRORES, HOWEVER THE RATE OF INTEREST ON THE LOANS TAKEN WAS NOT AVAILABLE IN THE AUDITED ANNUAL ACCOUNTS. THE TPO HAS OBSERVED THAT IN THIS CASE THE ISSUE FOR DETERMINATION IS NOT ABOUT ALLOWABILITY OF INTEREST PAYMENT U/S 36(1)(III) BUT TO DETERMINE ARM'S LENGTH PRICE OF INT EREST CHARGED BY THE ASSESSEE FROM ITS AE. THEREFORE I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 7 THE TPO HAS DETERMINED THE CUP FOR THE RATE OF INTEREST CHARGED BY THE ASSESSEE ON LOAN GIVEN TO AE @ 10%. THIS APPEARS REASONABLE. IN THESE CIRCUMSTANCES, WE FIND NO COMPELLING REASONS TO INTERFERE WITH THE ORDER OF TPO AND THE ASSESSING OFFICER ON THIS ISSUE. 3. PROVISION FOR DOUBTFUL BAD DEBTS OF RS.21,48,564/ - : IN THE DRAFT ASSESSMENT ORDER, THE ASSESSING OFFICER HAS DISALLOWED RS.21,48,564/ - BEING THE PROVISION FOR DOUBTFUL / BAD DEBTS. THE ASSESS ING OFFICER HAS OBSERVED THAT VIDE PROVISIONS OF FINANCE ACT, 2009 AS INSERTED IN CLAUSE (I) TO EXPLANATION - I OF SECTION 1L5JB (APPLICABLE W.E.F. 01.04.2001 RETROSPECTIVELY), THE PROVISIONS CANNOT BE CLAIMED AGAINST THE BOOK PROFIT FOR THE PURPOSE OF ARRI VING AT THE INCOME FOR TAXATION U/S 115JB OF I.T. ACT, 1961. IN THIS ISSUE THE OBSERVATION OF THE ASSESSING OFFICER APPEARS TO BE CORRECT HENCE WE FIND NO REASON TO INTERFERE WITH THE ORDER OF ASSESSING OFFICER ON THIS ISSUE. SINCE BOTH THE SIDES HAD AG REED TO RESTORE THE ISSUE TO THE FILE OF THE DRP FOR MAKING A SPEAKING ORDER, WE RESTORE THE ISSUE TO THE FILE OF DRP WITH A DIRECTION THAT THE DRP MAY PASS A FRESH SPEAKING ORDER U/S 144C OF THE INCOME - TAX ACT AFTER MEETING OUT ALL THE OBJECTIONS PREFERAB LY WITHIN A YEAR FROM THE DATE OF THE SERVICE OF THE ORDER AFTER PROVIDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 8 6 . ON THE DIRECTION OF THE ITAT THE DRP PASSED THE ORDER DATED 17.01.2013 AND DIRECTED THE AO TO COMPLETE THE ASSESSMENT IN ACCORDAN CE WITH THE DIRECTIONS GIVEN IN THE SAID ORDER. THEREAFTER, THE AO PASSED THE IMPUGNED ASSESSMENT ORDER ON 24.07.2013. 7 . NOW THE ASSESSEE HAS CHALLENGED THE VALIDITY OF THE ASSESSMENT ORDER PASSED BY THE AO. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THA T AS PER THE PROVISIONS CONTAINED IN SUB - SECTION 13 OF SECTION 144C OF THE ACT, TH E AO COULD HAVE PASSED THE ORDER ON OR BEFORE 28.02.2013 BECAUSE THE ORDER WAS TO BE PASSED WITHIN ONE MONTH FROM THE END OF THE MONTH IN WHICH THE DIRECTION HA D BEEN GIVEN B Y THE DRP. HOWEVER, IN THIS CASE THE ORDER WAS PASSED ON 24.07.2013, THEREFORE, IT WAS BARRED BY LIMITATION. IT WAS FURTHER SUBMITTED THAT THE DIRECTION WAS GIVEN BY THE ITAT VIDE ORDER DATED 18.08.2011 TO THE DRP FOR PASSING THE ORDER WITHIN A YEAR. HOWEV ER, THE DRP PASSED THE ORDER ON 17.01.2013 WHICH WAS IN VIOLATION OF THE DIRECTION GIVEN BY THE ITAT, THEREFORE, THE ORDER PASSED BY THE DRP WAS ALSO BAD - IN - LAW. 8 . IN HIS RIVAL SUBMISSIONS THE LD. CIT DR SUBMITTED THAT THE ORDER WAS PASSED BY THE AO WIT HIN TIME AS PER THE I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 9 PROVISIONS CONTAINED IN 4 TH PROVISO TO SECTION 153(2A ) OF THE ACT, WHICH PROVIDES THAT THE ORDER MAY BE PASSED WITHIN TWO YEARS OF THE DIRECTIONS GIVEN IN THE ORDER PASSED U/S 254 OF THE ACT BY THE ITAT. IN HIS REJOINDER THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PROVIS IONS CONTAINED IN SECTION 153(2A ) OF THE ACT ARE NOT APPLICABLE TO THE FACTS OF THE PRESENT CASE BECAUSE THOSE PROVISIONS ARE APPLICABLE IF A REFERENCE HAS BEEN MADE BY THE TPO UNDER SUB - SECTION ( 1 ) OF SECTION 92C A OF THE ACT. HOWEVER, IN THE PRESENT CASE, THE ASSESSMENT ORDER WAS PASSED BY THE AO ON THE DIRECTION OF THE DRP AND NO REFERENCE WAS MADE TO THE TPO WHEN THE MATTER WAS RESTORED BY THE ITAT TO THE DRP. 9 . WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS AN ADMITTED FACT THAT THE ITAT VIDE ORDER DATED 18.08.2011 IN ITA NO. 4556/DEL/2010, DIRECTED THE DRP TO PASS THE ORDER PREFERABLY WITHIN ONE YEAR FROM THE RECEIPT OF THE S AID ORDER. WE, THEREFORE, DO NOT SEE ANY MERIT IN THIS ARGUMENT OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE ORDER PASSED BY THE DRP WAS NOT WITHIN THE TIME LIMIT OF ONE YEAR BECAUSE THE DIRECTIONS WERE GIVEN TO PASS THE ORDER PREFERABLY WITHIN ONE YEAR BU T NO TIME LIMIT WAS FIXED. NOW THE QUESTION ARISES AS TO WHETHER THE ORDER I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 10 PASSED BY THE AO WAS WITHIN TIME LIMIT AS PRESCRIBED U/S 144C(13) OF THE ACT. THE SAID PROVISIONS READ AS UNDER: 144C(13) 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, WITH IN ONE MONTH FROM THE END OF THE MONTH IN WHICH SUCH DIRECTION IS RECEIVED. 10. FROM THE AFORESAID PROVISIONS IT IS CLEAR THAT THE AO SHALL PASS THE ASSESSMENT ORDER INCONFORMITY WITH THE DIRECTION GIVEN BY THE DRP WITHIN ONE MONTH FROM THE END OF TH E M ONTH IN WHICH SUCH DIRECTION HAS BEEN RECEIVED. IN THE AFORESAID PROVISIONS, THE USE OF THE WORD SHALL MAKES IT MANDATORY FOR THE AO TO COMPLY WITH THE DIRECTIONS OF THE LD. DRP AND PASS THE ASSESSMENT ORDER WITHIN ONE MONTH OF THE RECEIPT OF SUCH DIRECT IONS . IT IS ALSO NOTICED THAT THIS SUB - SECTION (13) OF SECTION 144C OF THE A CT HAS AN OVERRIDING EFFECT ON THE PROV ISIONS CONTAINED IN SECTION 153 OF THE ACT BECAUSE THE SENTENCE STARTS WITH NON - OBSTANTE CLAUSE AND IT HAS BEEN PROVIDED IN SECTION 144C(13) OF THE ACT THAT NOTWITHSTANDING ANYTHING TO CONTRARY , CONTAINED IN SECTION 153 OR SECTION 153B OF THE ACT, T HE ASSESSMENT I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 11 SHALL BE COMPLETED WITHIN ONE MONTH FROM THE END OF THE MONTH IN WHICH DIRECTIONS GIVEN BY THE DRP ARE RECEIVED BY THE AO . THEREFORE , THE PROVISIONS CONTAINED IN SUB - SECTION (13) OF SECTION 14 4C OF THE ACT OVERRIDES THE PRO VISIONS CONTAINED IN SECTION 153 OR SECTION 153B OF THE ACT. FURTHERMORE, 4 TH PROVISO TO SECTION 153(2A ) OF THE ACT READ S AS UNDER: PROVIDED ALSO THAT WHERE THE OR DER UNDER SECTION 254 IS RECEIVED BY THE (PRINCIPAL CHIEF COMMISSIONER OR) CHIEF COMMISSIONER OR (PRINCIPAL COMMISSIONER OR) COMMISSIONER OR, AS THE CASE MAY BE, THE ORDER UNDER SECTION 263 OR SECTION 264 IS PASSED BY THE (PRINCIPAL COMMISSIONER OR) COMMIS SIONER ON OR AFTER THE 1 ST DAY OF APRIL , 2010, AND DURING THE COURSE OF THE PROCEEDING FOR THE FRESH ASSESSMENT OF TOTAL INCOME, A REFERENCE UNDER SUB - SECTION (1) OF SECTION 92CA IS MADE, THE PROVISIONS OF THIS SUB - SECTION SHALL, NOTWITHSTANDING ANYTHING CONTAINED IN THE SECOND PROVISO, HAVE EFFECT AS IF FOR THE WORDS ONE YEAR , THE WORDS TWO YEARS HAD BEEN SUBSTITUTED. 11 . FROM THE ABOVE PROVISIONS IT IS CLEAR THAT WHEN A REFERENCE HAS BEEN MADE BY THE AO U/S 92CA(1) OF THE ACT, THE TIME LIMIT FOR C OMPLETION OF THE ASSESSMENT IS TWO YEARS FROM THE RECEIPT OF THE ORDER U/S 254 OF THE ACT. BUT IN THE PRESENT CASE, THERE WAS NO SUCH DIRECTION BY THE ITAT TO THE I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 12 AO TO MAKE THE REFERENCE AGAIN WHICH HE HAS ALREADY MADE TO THE TPO WHO PASS ED THE ORIGINAL O RDER U/S 92CA(3) OF THE ACT ON 19.10.2009 . IN THE PRESENT CASE, AS THERE WAS NO SUCH DIRECTION GIVEN BY THE ITAT IN THE ORDER DATED 18.08.2011 TO THE AO TO MAKE THE REFERENCE AGAIN RATHER THE DIRECTIONS WERE GIVEN TO THE LD. DRP WHO COMPLIED WITH THOS E DIR ECTION AND PASSED THE ORDER ON 17.01.2013 , I N THE END OF THE SAID ORDER, IT IS CLEARLY MENTIONED THAT THE COPY OF THE ORDER IS TO BE GIVEN TO THE AO I.E. ADDITIONAL CIT, RANGE - 10, NEW DELHI. THEREFORE, WE DO NOT SEE ANY MERIT IN THIS CONTENTION OF THE DEPA RTMENT THAT THE AO PASSED THE ASSESSMENT ORDER , ONLY AFTER RECEIVING THE DIRECTIONS OF THE DRP THROUGH TPO WHO IS TECHNICAL OFFICER TO DECIDE THE MATTER RELATED TO THE ARM S LENGTH PRICE ADJUSTMENT S . WE, THEREFORE, CONSIDERING THE TOTALITY OF THE FACTS AND THE LEGAL PROVISION AS DISCUSSED HEREINABOVE ARE OF THE VIEW THAT THE ASSESSMENT FRAMED BY THE AO VIDE ORDER DATED 24.07.2013 WAS BARRED BY LIMITATION. THEREFORE, THE SAID ASSESSMENT ORDER IS QUASHED . S INCE , WE HAVE DECIDED THE LEGAL ISSUE IN FAVOUR OF TH E ASSESSEE, THEREFORE, NO FINDINGS ARE BEING GIVEN ON OTHER ISSUES AGITATED BY THE ASSESSEE ON MERITS OF THE CASE. I TA NO . 5326 /DE L/2013 DABUR PHARMA ( FRESENIUS KABI ONCOLOGY LTD. ) 13 12 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ( ORDER PRON OUNCED IN THE COURT ON 30 /05 / 2016 ) SD/ - SD/ - ( BEE NA PILLAI ) ( N. K. SAINI ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30 /05 /2016 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR