PERFETTI VAN MELLE INDIA PVT LT.D,GURGOAN V. DCIT, CIRCLE-1, GURGAON

SA 479/DEL/2024

AI Insights

The case involves M/s Perfetti Van Melle India Private Limited, the appellant, contesting an outstanding demand raised by the Deputy Commissioner of Income Tax, Circle-1, Gurugram, related to income tax and interest for the assessment year 2021-22. The primary issue in dispute is the Transfer Pricing additions made to the company's expenses, which were significantly higher than in previous years. The Tribunal considered previous decisions in favor of the assessee for similar issues in earlier assessment years and acknowledged that the department had appealed these decisions to the Delhi High Court. The Tribunal decided to stay the recovery of the demand pending the outcome of the quantum appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396935 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 27-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Assessment Year: 2021-2022
• Other Referred Cases: ITA no. 463/Del/2021, ITA no. 463/Del/2021, ITA no. 463/Del/2021, ITA no. 463/Del/2021
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S.K. JHADAV; JITENDER
• Assessee Lawyers: DEEPAK CHOPRA; SHEETAL KANDPAL
• Keywords: Transfer pricing; Application of stay
• Section: 2

Judgement Text

"1 SA no. 479/D/2024 (In ITA no. 5389/Del/2024) A.Y. 2021-22 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘H’: NEW DELHI) BEFORE SHRI C N PRASAD, JUDICIAL MEMBER, AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER SA No.: 479/Del/2024 Arising Out of ITA No.: 5389/Del/2024 (Assessment Year: 2021-22) M/s Perfetti Van Melle India Private Limited 47, Mileestone Delhi-Jaipur Highway, Manesar, Gurugram-122050, Haryana v. DCIT, Circle-1, Gurugram PAN No: AAACP2626A APPELLANT RESPONDENT Assesseeby : Shri Deepak Chopra, Adv. & Ms. Sheetal Kandpal, Adv. Revenue by : Shri S.K.Jhadav, CIT-DR& Shri Jitender Chand, Sr. DR Date of Hearing :10.03.2025 Date of Pronouncement :27.05.2025 ORDER PER BENCH: This stay application in SA no. 479/Del/2024, arising out of ITA no. 5389/Del/2024 for A.Y. 2021-22, has been filed by the assessee, seeking stay on recovery of outstanding demand raised by the ld. 2 SA no. 479/D/2024 (In ITA no. 5389/Del/2024) A.Y. 2021-22 Assessing Officer towards income tax and interest thereon, amounting to Rs. 36,93,40,283/- . 2. The stay application bearing number SA 479/Del/2024 was heard along with the quantum appeal in ITA no. 5389/Del/2024, on 10.03.2025. The main bone of the contention of the learned counsel for the assessee during the course of hearing was that the solitary issue arising in the appeal is with respect to Transfer Pricing additions being made towards Advertising , Marketing and Promotion Expenses, wherein substantive Transfer Pricing additions were made to the tune of Rs. 97,65,73,738/-. Further, protective Transfer Pricing additions were made to the tune of Rs. 147,44,58,292/- using Bright Line Test. It was submitted that the issue is squarely covered by the decisions of the Delhi Tribunal in assessee’s own case for earlier years. Our attention was drawn to the order dated 22.09.2021 of the ITAT, Delhi in assessee’s own case in ITA no. 463/Del/2021 for assessment year 2016-17,wherein issue was decided in favour of the assessee. Reference was also drawn to the decision of the Tribunal in assessee’s own case for assessment year 2011-12, 2012-13 and 2017-18 , vide common order dated 30.05.2023 passed by the Delhi Tribunal , wherein issue is decided in favour of the assessee. 3. Learned Sr. DR on the other hand submitted that the department has filed appeal against the orders of the Tribunal with Hon’ble Delhi High Court. 3 SA no. 479/D/2024 (In ITA no. 5389/Del/2024) A.Y. 2021-22 4. We have heard rival contentions and perused the material on record. Since, we have already heard the quantum appeal on 10.03.2025 in ITA no. 5389/Del/2024 for assessment year 2021-22 ,and the order of the Tribunal is awaited. Thus, without commenting on the merits of the issue arising in the quantum appeal, we are staying recovery of outstanding demand for a period of 30 days(Thirty days) from the date of this order or pronouncement of the order in the quantum appeal in ITA no. 5389/Del/2024 for assessment year 2021-22 by the Tribunal, which ever is earlier. The stay application is disposed off accordingly. We order accordingly. 5. In the result, Stay Application is partly allowed in the manner as indicated above. Order pronounced in the open court on 27th May, 2025. Sd/- Sd/- (C.N.PRASAD) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 27th May, 2025. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DRP 5. DR Asst. Registrar, ITAT, New Delhi "