Huawei Telecommunications India Company Private Limited Vs ACIT (Delhi High Court)
Delhi High Court held that non-passing of order by TPO/ AO pursuant to remand by ITAT within statutory time limit prescribed under section 153 of the Income Tax Act is not justifiable. Accordingly, return filed by the petitioner is considered as accepted.
Facts- The petitioner is a company registered under the Companies Act, 1956 and is a subsidiary of Huawei Technologies Coopertief U.A (Netherlands). The return of the petitioner was picked up for scrutiny. AO made additions towards transfer pricing adjustments to the tune of INR 1,97,84,000/-; disallowance u/s. 36(1)(va) for failure to deposit the employee contribution of PF within due date – INR 88,62,908/-; disallowance of advertisement expenses – INR 6,89,16,793/-; disallowance for provision for customer claims u/s. 37 or 40(a)(ia) – INR 12,86,11,894/-; disallowance under Section 37 for advances written off – INR 61,60,172/-.
The petitioner filed an appeal against the final assessment order dated 03.10.2017 before ITAT. ITAT allowed the appeal and passed an order dated 24.02.2021 remanding the issue of transfer pricing to the Transfer Pricing Officer (TPO) for a fresh determination. It is the petitioner’s case that no order has been passed pursuant to the remand by the learned ITAT and consequently, the statutory time (as stipulated under Section 153 of the Act) for the TPO or the AO to pass an order has since expired.
