PANASONIC LIFE SOLUTIONS INDIA PRIVATE LIMITED (SUCCESSOR IN INTEREST TO PANASONIC INDIA PVT LTD),GURGAON V. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 3(1) GURGAON, GURGAON

ITA 4802/DEL/2024

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 41789 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: misc
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APPELLANT ASSESSEE; DHARAM VEER SING H
• Assessee Lawyers: K.M. GUPTA
• Keywords: Revised return; Transfer pricing; International transaction; Principle of natural justice; Rectification of order
• Section: 143(3); 142(1); 143(2); 250; 143(1); 144C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’ NEW DELHI BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA Nos. 4802 & 4814/Del/2024 (Assessment Years : 2017-18 & 2018-19) Panasonic Life Solutions India Private Limited (Successor in interest to Panasonic India Pvt. Ltd.) 12th Floor Ambience Corporate Office, Tower-2, Ambience Island, Gurgaon Haryana – 122 002 PAN : AADCP 9391 B Vs. The DCIT Circle – 3(1), Gurgaon – 122 008 (Appellant) (Respondent) Assessee by Shri K. M. Gupta, Adv. and Ms. Shruti Khimta, AR Respondent by Shri Dharam Veer Singh, CIT-D.R. Date of Hearing 17.02.2025 Date of Pronouncement 17.02.2025 O R D E R PER BENCH : 1. Both Assessee’s appeals are against different orders dated 20.08.2024 and 21.08.2024 of the Learned Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as ‘Ld. CIT(A)’] under section 250 of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] arising out of assessment orders dated 08.06.2021 & 02.11.2021 passed by NFAC, Delhi (hereinafter referred as ‘Ld. AO’) 2- ITA Nos. 4802 & 4814/Del/2024 Panasonic Life Solutions India Private Limited vs. DCIT A.Ys. 2017-18 & 2018-19 under section 143(3) read with section 144C(3) read with section 144B of the Act for the Assessment Years 2017-18 & 2018-19 respectively. 2. Both the appeals involve similar facts, grounds and issues. For facility of convenience, both the appeals were heard together and are being disposed of by a common order. ITA No.4802/Del/2024 for A.Y. 2017-18 is taken as a lead case. 3. Brief facts of case are that the appellant/assessee-company electronically filed its return of income as ‘Nil’ on 29.11.2017. Later on, the assessee revised return of income as ‘Nil’ on 29.03.2019. The return was processed and 143(1) order intimation was served. The case was selected for complete scrutiny through CASS. Notice under section 143(2) was issued. Notices under section 142(1) were issued. Assessee e-filed necessary information and details. Reference under section 92CA(1) of the Act was made to the Transfer Pricing Officer, New Delhi with the prior approval of Pr. CIT, Gurugram for determining the Arm’s Length Price under section 92CA(3) of the Act in respect of International Transactions entered into by assessee-company with its associated enterprises for assessment year. The TPO passed order and rectification order dated 01.02.2021. Draft assessment order dated 24.04.2021 under section 144C read with section 144B of the Act was passed. Assessee vide submission dated 01.05.2021, requested for 3- ITA Nos. 4802 & 4814/Del/2024 Panasonic Life Solutions India Private Limited vs. DCIT A.Ys. 2017-18 & 2018-19 rectification in Draft Assessment Order. The assessee was supposed to raise issues in response to show-cause notice dated 21.04.2021. Assessee vide reply dated 18.05.2021 submitted that assessee does not intend to file any objection before the DRP and to file appeal before NeFAC, Commissioner of Income-tax Appeals CIT(A) challenging the assessment order. Assessment order dated 08.06.2021 was passed by learned AO. 4. Against order dated 08.06.2021, assessee filed appeal before CIT(A) which was dismissed vide order dated 20.08.2024. 5. Being aggrieved, appellant/assessee preferred present appeal. 6. Learned Authorized Representative for appellant/assessee submitted that learned CIT(A) passed order under section 250 of the Act without jurisdiction. Learned CIT(A) erred in passing a non- speaking order which is arbitrary, contrary to the principles of natural justice and not taking into consideration the submissions/request to transfer the appeal of CIT(A), Delhi 44 in accordance with the notification 113/2022 dated Oct 13, 2022. The learned CIT(A) erred in not adjudicating the appeal on merit and incorrectly held that assessment order appealed is in pursuance to the directions of the DRP and AO shall pass a 143(3) order incorporating the TP adjustments made in the TP order. So the matter be restored to the file of learned CIT(A). 4- ITA Nos. 4802 & 4814/Del/2024 Panasonic Life Solutions India Private Limited vs. DCIT A.Ys. 2017-18 & 2018-19 7. Learned Departmental Representative for the Department of Revenue relied order of learned CIT(A). 8. From examination of record in light of aforesaid rival contentions, it is crystal clear that learned CIT(A), in violation of principle of natural justice, passed order dated 20.08.2024. Learned CIT(A) failed to take into consideration the submission/request to transfer the appeal to CIT(A), Delhi-44 in accordance with notification No. 113/2022 dated Oct 13, 2022 and decided the merit incorrectly by holding that the assessment order appeal is in pursuance to direction of DRP, although appellant/assessee had not filed any objection before the DRP. In view of the above material facts and well settled principle of law, in interest of justice, it is considered expedient to restore the matter to the file of learned CIT(A) for fresh decision in accordance with law. ITA No. 4814/Del/2024 for A.Y. 2018-19 : 9. As the facts and circumstances of the above mentioned appeal are admittedly mutatis mutandis similar to those discussed and disposed of in ITA No.4802/Del/2024 hereinabove, we hold accordingly and allow the appeal of the assessee for statistical purposes. 5- ITA Nos. 4802 & 4814/Del/2024 Panasonic Life Solutions India Private Limited vs. DCIT A.Ys. 2017-18 & 2018-19 10. In the result, both the appeals filed by assessee are allowed for statistical purposes. Order was pronounced in the open court on 17.02.2025 and reduced to writing and signed on 21.02.2025 Sd/- Sd/- (RAMIT KOCHAR) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 21.02.2025 Pr i ti Y adav, S r. PS * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "