S.A.PROPCON P.LTD,NEW DELHI V. ACIT, CENTRAL CIRCLE-30, NEW DELHI

ITA 6370/DEL/2018

AI Insights

The case involves multiple appeals by M/s S.A. Propcon Pvt. Ltd. against the orders of the Commissioner of Income Tax (Appeals)-30, New Delhi, concerning reassessment proceedings for the Assessment Years 2011-12 to 2014-15. The primary legal issue raised was the non-disposal of the objections filed by the assessee in response to the reassessment notices issued under section 148 of the Income Tax Act. The tribunal noted that the reassessment orders were passed within the limitation period and directed the AO to address the objections and finalize the assessments accordingly. Additionally, for the Assessment Year 2014-15, the tribunal adjusted the transfer pricing method applied by the TPO regarding interest on a loan to a foreign AE.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711544 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2014-2015
• Other Referred Cases: Gududhar Brothers vs. 40 ITR 298(SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH VERMA
• Keywords: Transfer pricing; Reassessment proceedings; Period of limitation
• Section: 147; 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’: NEW DELHI BEFORE SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.5618/Del/2018 (ASSESSMENT YEAR 2011-12) ITA No.6369/Del/2018 (ASSESSMENT YEAR 2012-13) ITA No.5619/Del/2018 (ASSESSMENT YEAR 2013-14) ITA No.6370/Del/2018 (ASSESSMENT YEAR 2014-15) M/s S.A. Propcon Pvt. Ltd., C-10 Block-C Main Market, Vasant Vihar, New Delhi-110057 PAN-AAKCS1777M Vs. ACIT, Central Circle-30, New Delhi. (Appellant) (Respondent) Assessee by None Department by Shri Mukesh Verma, Sr. DR Date of Hearing 21/07/2025 Date of Pronouncement 25/07/2025 O R D E R PER PRAKASH CHAND YADAV, JM: All these appeals of the assessee are arising from the order of Ld. Commissioner of Income Tax (Appeals)-30, New Delhi dated 30th July. 2018 in Appeal Nos239-242/17-18/2902-2905 for Asst. Years 2021-12 to 2014-15. 2. All these appeals were filed by the assessee somewhere in 2018 and already listed 26th time before the Bench. On every occasion, either the assessee or the Revenue has sought adjournment. Today, when this matters were called for, no body appeared from the side of the assessee, despite proper service of the notice of hearing. Printed from counselvise.com 2 ITA N0. 5618 & Ors. /Del/2018 S.A. Propcon P. Ltd. vs. ACIT 3. Perusal of the grounds of appeal filed by the assessee would so that the assessee has raised one legal ground, i.e., non-disposal of the objection filed by the assessee before the AO in response to the reassessment proceedings for Assessment Years 2011-12, 2012-13 and 2013-14, initiated by the AO u/s 148 of the Act. Hence, the assessment proceedings are null and void. 4. The Ld. DR Relied upon the orders of the authorities below. 5. In these cases, notice u/s 148 has been issued by the Assessing Officer on 11th August, 2016 and the assessee has filed its return of income on 12th September, 2016. Thereafter the reasons recorded were provided to the assessee and the assessee has filed its objections on 08.11.2016. Time limit for completing the assessment was 31st December, 2017 and the Assessing Officer has passed the reassessment order on 23rd October, 2017 and on 17.11.2017 in some years. therefore, there was time left with the Assessing Officer in terms of the limitation. It is settled position of law that if any illegality supervened during the course of proceedings and not at the initial stage, then, clock will start from that point where such illegality occurred as held by the Apex Court in Gududhar Brothers repored in 40 ITR 298(SC). Therefore, in our view the proceedings would start again from the date when the assessee has filed its objection before the AO that is 08.11.2016. It is made clear that AO will dispose-off the objections and passed the final order within such period of limitation which was available with him originally. It is further directed to the Assessing Officer that he will examine as to whether provisions of 153C are to be invoked in this case or provisions of 147 are to be invoked in this case. 3. So far as Assessment Year 2014-15 is concern, the grievance of the assessee is that the TPO has applied the LIBOR plus 400 basis point with respect to the interest applicable to the loan advance by the assessee to its Hongkong AE. Considering the facts and circumstances, and recent judicial pronouncements, as applicable in transfer pricing proceedings, we hereby direct the TPO to apply libor+ 200 basis point for computing interest attributable to the Printed from counselvise.com 3 ITA N0. 5618 & Ors. /Del/2018 S.A. Propcon P. Ltd. vs. ACIT amount of loan advanced by the assessee of its AE and then compute the Arm’s Length Price of the transactions. With these observations, the appeals filed by the assessee are allowed for statistical purposes. 7. In the result, all the appeals of the assessee stands allowed. Order pronounced in the open court on 25/07/2025. Sd/- Sd/- (MANISH AGARWAL) (PRAKASH CHAND YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 25/07/2025 PK/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 "