Ceragon Networks India Private Limited Vs DCIT (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) considered the assessee’s appeal against the assessment order dated 24.10.2024 passed under Sections 143(3) read with 144C(13) and 144B of the Income-tax Act, 1961 for Assessment Year 2021-22, pursuant to the directions issued by the Dispute Resolution Panel (DRP) under Section 144C(5).
At the hearing, the assessee pressed Ground No. 1.4, raising a legal challenge that the Assessing Officer had passed the final assessment order without giving effect to the DRP’s directions, contrary to Section 144C of the Act.
The assessee pointed out that the final assessment order itself recorded that the DRP had issued directions on 30.09.2024 modifying the transfer pricing adjustments proposed by the Transfer Pricing Officer (TPO), but stated that the order giving effect to those directions had not been received from the TPO. Despite this observation, the Assessing Officer proceeded to pass the final assessment order.
The assessee submitted that the TPO had subsequently passed the order giving effect to the DRP’s directions under Section 144C on 28.10.2024. According to the assessee, the Assessing Officer failed to follow the order giving effect passed by the TPO even though there was sufficient time to pass the final assessment order in accordance with the statutory provisions. It was contended that the assessment order was therefore vitiated. In support of this contention, reliance was placed on the decision of the Delhi Bench of the ITAT in Comparex India P. Ltd. vs. ITO, ITA No. 2151/Del/2024, order dated 09.09.2024, which was stated to involve identical facts.
