Pr Commissioner of Income-tax, Delhi-2 v. Ciena India Pvt. Ltd
[Citation -2017-LL-1030-9]
| Citation | 2017-LL-1030-9 |
|---|---|
| Appellant Name | Pr Commissioner of Income-tax, Delhi-2 |
| Respondent Name | Ciena India Pvt. Ltd. |
| Court | HIGH COURT OF DELHI AT NEW DELHI |
| Relevant Act | Income-tax |
| Date of Order | 30/10/2017 |
| Judgment | View Judgment |
| Keyword Tags | dispute resolution panel • transfer pricing officer • draft assessment • fixed asset |
| Bot Summary: | CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE SANJEEV SACHDEVA ORDER 30.10.2017 Terming the deletion of 7,13,33,358/-, by the impugned order of the Income Tax Appellate Tribunal as an error in law, the Revenue appeals to this Court under Section 260A of the Income Tax Act. The Revenue urges that the amounts could not have been capitalized and that the corresponding amounts were not added to the cost of capital under Section 43A, in the closing balance to the previous year. This Court notices that the draft assessment order made under Section 144C by the Transfer Pricing Officer was examined by the Dispute Resolution Panel which affirmed the treatment of such capitalization. The DRP took into consideration the payment towards purchase of fixed assets and also noticed that a sum of 3,96,37,875/- were re-instated on account of closing balance of creditors ITA No.909/2017 Page 1 for fixed assets. These were examined by the ITAT. The DRP s directions, are binding by virtue of Section 144C(10) of the Income Tax Act. In these circumstances and also noting that the ITAT examined the matter, after taking into account all the facts, the Court is of the opinion that no substantial question of law arises. |