IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “H” BENCH: NEW DELHI BEFORE SHRI YOGESH KUMAR U.S, JUDICIAL MEMBER &

SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.2705/Del/2024 (ASSESSMENT YEAR 2011-12)

O R D E R

PER MANISH AGARWAL, AM:

This appeal is filed by the Assessee against the final assessment order dated

31.03.2024 passed u/s 144C r.w.s. 143(3) r.w.s. 254 of the Income Tax Act, 1961 (‘the Act”) arising out of the directions issued by the ld. Dispute Resolution Panel -

1, New Delhi ("ld. DRP") dated 18.09.2023 for Assessment Year 2011-12.

2. Brief facts of the case are that assessee filed its return of income for on 30.11.2011 declaring total income of Rs. 1,27,46,780/-. The case was selected for scrutiny through CASS. Thereafter draft assessment order dated 20.02.2015 was passed proposing adjustment of Rs. 1,93,37,357/- as per order of TPO and further addition of Rs. 82,92,871/- on account of unexplained expenses was proposed.

Against the draft order, assessee filed objections before the ld. DRP. The ld. DRP vide its order dated 30.11.2015 upheld the adjustments and additions proposed in draft assessment order. Accordingly, final assessment order u/s 144C(3) of the Act was passed on 29.01.2016 determining the total income of the assessee at Rs. 4,03,77,010/- after making addition of Rs. 1,93,37,357/- on account of transfer pricing and addition of Rs. 82,92,871/- on account of unexplained expenses. Aggrieved by the said order, assessee filed appeal before the Tribunal who vide its order in ITA No. 4175/Del/2016 dated 18.06.2020 restored the matter to the file of TPO on the issue of Transfer Pricing issue and the issue of unexplained investment was restored to the file of AO. Accordingly, the TPO vide its order u/s 92CA(3) of the Act dated 31.07.2021 proposed adjustment of Rs. 1,62,32,530/-. Thereafter the AO passed draft assessment order on 28.12.2022 proposing to made the additions towards the adjustments proposed by TPO. Against the said order assessee filed objections before ld. DRP who gave directions in terms of its order dt. 18.09.2023 wherein all the objections raised by the assessee were dismissed. Subsequently, the AO passed the Final assessment order on 31.03.2024 u/s 144C r.w.s. 143(3)/254 of the Act at a total income at Rs. 3,72,72,181/- by making addition of Rs. 1,62,32,530/- TP adjustments and further addition of Rs. 82,92,871/- was made towards unexplained expenses.

4. Against the said order, the assessee is again preferred appeal before the Tribunal by taking the following grounds of appeal:-

1. “That on the facts and circumstances of the case and in law, the order u/s 143(3)

r.w.s144C(13) passed by the AO is bad in law and void ab initio since it has been passed beyond the limitation prescribed under section 144C(13).

2. That on the facts and circumstances of the case and in law, the AO has erred in assessing the total income of the Appellant at IN 3,72,72,181 by making an addition amounting to INR 2,45,25,401 as against the returned income amounting to INR 1,27,46,780.

Transfer Pricing adjustment amounting to INR 1.62,30.459 in respect of the international transaction pertaining to fees for receipt of technical services for provision of spend management solutions services:

3. That on the facts and circumstances of the case and in law, the AO/ DRP/ TPO have erred in making Transfer Pricing ("TP") adjustment amounting to INR 1,62,30,459 in respect of the international transaction pertaining to fees for receipt of technical services for provision of spend management solutions services alleging that the same is not at arm's length.

3.1. That on facts and circumstances of the case and in law, the AO / DRP / TPO have erred in not following the express directions of the ITAT issued in the 1st round of proceedings.

3.2 That on the facts and circumstances of the case and in law, the TPO has erred in not discharging the statutory onus of establishing that the conditions specified in clauses (a) to (d) of section 92C(3) of the Act