Draft Assessment Must Be Given To Eligible Taxpayer Before Prejudicial Variation In Final Assessment: ITAT Delhi

The Income Tax Appellate Tribunal, Delhi Bench, has ruled that tax authorities must issue a draft assessment order to an eligible taxpayer before passing a final order if they propose a change prejudicial to the taxpayer's interests. A foreign company is expressly included in the definition of an “eligible assessee” for this purpose.The tribunal observed that the Assessing Officer “firstly has to mandatorily forward a draft” of the proposed assessment order when such a prejudicial variation is...

Turnover Filter Cannot Be Applied Mechanically To Exclude Transfer Pricing Comparables: ITAT Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 9 September held that transfer pricing comparables cannot be excluded merely by applying a rigid turnover filter where the entities are otherwise functionally comparable. A Division Bench comprising Judicial Member Satbeer Singh Godara and Accountant Member Manish Agarwal partly allowed twin appeals filed by GE India Industrial Pvt. Ltd. for assessment years 2007-08 and 2008-09 against transfer pricing adjustments and various...

Omission Of Specified Domestic Transactions From Transfer Pricing Regime Prospective: ITAT New Delhi

The Delhi Income Tax Appellate Tribunal (ITAT) on 2 September held that the omission of specified domestic transactions from the transfer pricing regime cannot operate retrospectively where the legislature has expressly provided that the amendment will apply prospectively. A Bench comprising Judicial Member Satbeer Singh Godara and Accountant Member Manish Agarwal upheld the transfer pricing proceedings against Dixon Technologies (India) Ltd. for Assessment Year 2013-14 involving an adjustment...

ITAT Delhi Sets Aside ₹1.53 Crore EDC TDS Demand Against DLF Homes

The Delhi Income Tax Appellate Tribunal has set aside an appellate order upholding a ₹1.53 crore tax demand against DLF Homes Panchkula Private Limited over External Development Charges. The tribunal sent the matter back to the Assessing Officer to verify whether Haryana Urban Development Authority (HUDA/HSVP) had met the conditions under the Income Tax Act that could protect the developer from being treated as an assessee-in-default.If those conditions are fulfilled, DLF Homes cannot be saddled...

Live Cricket Broadcast Payments Not Taxable as Royalty, Non-Live Broadcast Rights Are: ITAT Delhi

The Delhi Income Tax Appellate Tribunal has reiterated that payments for live cricket broadcasts are not taxable as royalty. However, the portion attributable to repeat or non-live broadcasts can be treated as royalty. Relying on earlier judgments, including the Supreme court's ruling in CIT v. Sri Lanka Cricket, the tribunal ruled:“Accordingly, we hold that the ld. CIT(A) has rightly held the live telecast as not the Royalty u/s 9(1)(vi) of the Act. However, the repeat telecast i.e. non live...

Delhi ITAT Says Entire Bogus Purchase Value Can't Be Added To Income, Applies 5% Rate On ₹5.94 Cr Turnover

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 31 August held that where both purchases and corresponding sales are found to be bogus, the entire purchase value cannot be added to income without accounting for the profit element arising from the transactions. Judicial Member Anubhav Sharma and Accountant Member Sanjay Awasthi partly allowed HSB Home Solutions Ltd.'s appeal for Assessment Year 2012-13, upholding the reopening of the assessment and directing the Assessing Officer...

ITAT Delhi Quashes Revision Against Sr. Advocate Mukul Rohatgi For CCIT's Unauthorised PCIT Notice

The Delhi Income Tax Appellate Tribunal (ITAT) on 28 August quashed the revisionary order passed against Senior Advocate Mukul Rohatgi for Assessment Year 2022-23, holding that the Section 263 notice issued by the officer after his promotion to CCIT was without jurisdiction.A Bench comprising Vice President Mahavir Singh and Accountant Member Sanjay Awasthi held that an officer promoted as Chief Commissioner of Income Tax (CCIT) cannot exercise the powers of the Principal Commissioner of...

Assessment Years Falling Beyond Prescribed Period Cannot Be Reopened In Search Proceedings: ITAT Delhi

The Delhi Income Tax Appellate Tribunal (ITAT) on 24 August held that an Assessing Officer cannot assume jurisdiction under Section 153C of the Income Tax Act, 1961, for assessment years falling outside the statutory block prescribed under the provision. The provision applies to the assessment of income of a person other than the person searched, where seized material is found to relate to such person.A Bench comprising Accountant Member S. Rifaur Rahman and Judicial Member Sunil Kumar Singh...

ITAT New Delhi Quashes Reassessment Based On Information Already Available On Record

The Delhi Income Tax Appellate Tribunal (ITAT) on 24 August 2026 held that reassessment proceedings cannot be initiated by presenting information already available on the assessment record as fresh material. Such proceedings are without jurisdiction. A Bench comprising Accountant Member S. Rifaur Rahman and Judicial Member Sunil Kumar Singh allowed five connected appeals involving Jay Ace Technologies Limited, JNJ Electronics Limited and other companies of the JP Minda Group for Assessment Year...

Delhi ITAT Excludes 4 Companies From WNS Transfer Pricing Comparables, Says Functional Similarity Is Key

The Delhi Income Tax Appellate Tribunal (ITAT) on 25 August upheld the exclusion of Eclerx Services, TCS E Serve, Infosys BPO and Acropetal Technologies from WNS Business Consulting Services' comparable set, observing that transfer-pricing comparables must be assessed on their actual functional profile rather than merely on their presence in the same broad industry. A Bench comprising Judicial Member Satbeer Singh Godara and Accountant Member Manish Agarwal dismissed the Revenue's appeal for...

Delhi ITAT Deletes ₹168.31 Cr Addition Against Hero FinCorp, Says DCF Valuation Must Use Available Facts

The Delhi Income Tax Appellate Tribunal (ITAT) on 25 August deleted a Rs. 168.31 crore share premium addition made against Hero FinCorp for Assessment Year 2018-19 under Section 56(2)(viib) of the Income Tax Act, 1961. Accountant Member S. Rifaur Rahman and Judicial Member Raj Kumar Chauhan held that the company's Discounted Cash Flow (DCF) projections could not be rejected merely by comparing them with subsequent financial results, and allowed the company's appeal. The Bench observed: “These...

Delhi ITAT Allows Foreign AE As Tested Party Under RPM In ₹13.42 Crore Transfer Pricing Case

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 19 August held that a foreign Associated Enterprise (AE) can be selected as the tested party under the Resale Price Method (RPM) for back-to-back merchant trading transactions where it is the least complex entity and reliable comparable data is available. A Bench comprising Judicial Member Satbeer Singh Godara and Accountant Member Manish Agarwal dismissed the Revenue's appeal against the deletion of a Rs. 13.42 crore transfer...