Case Law Details
STEAG Energy Services Vs ACIT (ITAT Delhi)
In the case of STEAG Energy Services vs. ACIT (ITAT Delhi), the Income Tax Appellate Tribunal (ITAT) made a significant ruling related to the Arm’s Length Price (ALP) adjustment under the Income Tax Act, 1961. This article provides a detailed analysis of the case and the implications of the ITAT’s decision.
Detailed Analysis: The appeal in question, ITA No. 835/Del/2016, pertains to the assessment year 2011-12. It arises from the order of the Assessing Officer (AO) dated December 31, 2015, passed under Section 143(3) read with Section 144C of the Income Tax Act.
Initially, the ITAT had disposed of this appeal, granting partial relief to the assessee, with the inadvertent omission of adjudicating ground No. 14. The assessee filed a miscellaneous application, leading to the recall of the appeal solely for the purpose of addressing ground No. 14.
Ground No. 14 raised the issue of the AO’s failure to follow the direction of the Dispute Resolution Panel (DRP). The DRP had directed that the benefit of the arm’s length range of +/- 5% be given, in line with the proviso to Section 92C(2) of the Act.
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