RICHEMONT INDIA PRIVATE LIMITED,NEW DELHI V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 19(1), NEW DELHI

ITA 3688/DEL/2024

AI Insights

The case involves Richemont India Private Limited appealing against the final assessment order passed by the AO, which did not consider the TPO's order adjusting the transfer price to nil. The TPO's order was in compliance with the directions of the Dispute Resolution Panel (DRP) under section 144C(5) of the Income Tax Act. The Tribunal noted that the AO had not taken into account the TPO's order while passing the final assessment order on the same day. The Tribunal directed the AO to consider the TPO's order and re-compute the assessee's income accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 771961 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHARM VEER SINGH
• Assessee Lawyers: REEMA MALIK

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘I’: NEW DELHI [ BEFORE SHRI SUDHIR PAREEK, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.3688/Del/2024 (ASSESSMENT YEAR 2020-21) Richemont India Private Limited, Unit No.6B, 6th Floor, ARIA Tower, Hotel J.W. Mariott, Aerocity Asset Area-4, Hospitality District, Delhi-110037. PAN-AADCR9256R Vs. Dy. CIT, Circle-19(1), New Delhi. (Appellant) (Respondent) Assessee by Ms. Reema Malik, Adv. Department by Shri Dharm Veer Singh, CIT-DR Date of Hearing 28/08/2025 Date of Pronouncement 28/08/2025 O R D E R [ PER MANISH AGARWAL, AM: This appeal is filed by the assessee against the assessment order dated 18.06.2024 passed by the Income Tax Officer in compliance to the direction given by the DRP. 2. During the course of hearing, the Ld. AR of the assessee drew our attention to the order passed by the TPO dated 18.06.2024, giving effect to the directions of DRP u/s 144C(5) dated 21.05.2024. The TPO after considering the directions re-computed the transfer price Printed from counselvise.com 2 ITA No.3688/Del/2024 Richemont India Pvt. Ltd. vs. DCIT adjustments at Nil as against Rs.33,95,93,805/- computed in the order passed earlier by the TPO dated 28.09.2023. It is thus, submitted by the Ld. AR there remained no adjustment after passing the order of TPO giving effect to the directions of the DRP, therefore, necessary directions be given to the AO for taking the said order on record as the AO has passed the final assessment order without considering the aforesaid order of the TPO dated 18.06.2024. 3. On the other hand, the Ld. CIT-DR stated that it is a factual aspect which needs to be verified by the AO. 4. Heard both parties. From the perusal of the order of Ld. TPO dated 18.06.2024 giving effect to the directions given by the DRP, we find that TPO finally computed transfer price adjustments at Nil and the AO has not considered this order of TPO while passing the final assessment order on very same day i.e. on 18.06.2024, against which the assessee is in appeal before us. 5. In view of these facts, we hereby direct the AO to consider the order giving effect and re-compute the income of the assessee. It is further seen that TPO has made no adjustment, therefore, there remained no grievance to the assessee. Accordingly, the grounds of appeal of the assessee are remand to the file of AO with the direction to pass consequent order for making necessary amendment in the total income based on TPO order dated 18.06.2024. Printed from counselvise.com 3 ITA No.3688/Del/2024 Richemont India Pvt. Ltd. vs. DCIT 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 28.08.2025. Sd/- Sd/- (SUDHIR PAREEK) (MANISH AGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29.08.2025 PK/Sr. Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "