Deloitte Consulting India Projects LP Vs Asstt. Director of Income Tax (ITAT Hyderabad)
Hyderabad ITAT dealt with a TP adjustment of Rs.2.67 crore relating to services rendered to AE under the USAID “RISE/GTG” clean-energy program. Assessee submitted that the AE itself was remunerated by USAID strictly on cost + 6%, and the assessee was remunerated on an identical back-to-back cost + 6% structure; hence no further TP mark-up could arise. TPO rejected the assessee’s contention solely on the ground that the original USAID–AE agreement was not furnished. Assessee later produced the agreement before DRP, which acknowledged its filing but declined to admit it due to procedural non-compliance under Rule 4 of the DRP Rules. Tribunal held that rejecting crucial, determinative evidence on a mere technicality defeats substantive justice, especially when the document goes to the root of ALP determination. ITAT admitted the additional evidence, set aside DRP’s directions, and restored the matter to DRP for fresh adjudication after considering the agreement and granting due opportunity. All alternative TP arguments were kept open. Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This appeal is filed by M/s. Deloitte Consulting India Projects LP (“the assessee”), feeling aggrieved by the order passed by the Learned Assistant Director of Income Tax (International Taxation)-1, Hyderabad (“Ld. AO”) dated 22.10.2024 for the A.Y. 2021-22.
