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IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH, ‘I’: NEW DELHI

BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER

AND

SHRI M. BALAGANESH, ACCOUNTANT MEMBER

ITA No.5848/Del/2024

Assessment Year 2021-22

Spectro Analytical Labs Vs. AU, Income Tax Department,

Private Limited Jao Circle 22(2) Delhi

E-41, Okhla Industrial

Area, Phase-II, Okhla

Industrial Estate, S.O.

Tehkhand, South East

Delhi-110020

PAN No.AACCS2840R

Appellant Respondent

Appellant Sh. Nageshwar Rao, Advocate

(Virtual)

Sh. Parth, Advocate

Respondent Sh. Dharm Veer Singh, CIT DR

Date of Hearing 11.12.2025

Date of Pronouncement 28.01.2026

ORDER

PER C.N. PRASAD, JM,

This appeal is filed by the assessee against the order for

the A.Y. 2021-22.

2. The Ld. Counsel for the assessee at the outset referring

to ground No. 1 and 2 of grounds of appeal submitted that the

impugned final assessment order dated 28.10.2024 is invalid

null and void as the same was passed not in conformity with

the directions issued by the Ld. DRP. The Ld. Counsel for the

assessee submitted that provision of section 144C prescribes

strict timelines for completion of assessment and there is no

scope of curative action after that time lapses.

3. The Ld. Counsel for the assessee submits that the

assessee is into business of material testing, inspection and

certification services. It offered a complete range of testing

services all under one roof for endless list of products and

materials in the fields of chemical biological, mechanical, non-

destructive, electrical and electronics. It is submitted that

during AY 2021-22, the assessee had entered into the

following international transactions with its Associated

Enterprises (AEs)

Sr. International Transactions Quantum Moaf rgin Most Appropriate

No. transaction (Rs.) Method use for bench

Marking

1 Provision of testing 81,33,451 TNMM using OP/OC As

Services -3.67% as PLI

2 Receipt of testing services 6,04,292

3 Receipt of 1,01,26,294 7%

international support

services fee

4 Payment of Royalty 39,42,000 6% CUP

Assessee’s Transfer Pricing Study (TPS) benchmarked the

above international transactions. TPS concluded that above

international transactions were at arm’s length.

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4. It is submitted that vide order dated 31.10.2023 under

section 92CA, Transfer Pricing Officer (TPO) proposed a

cumulative upward adjustment of ₹ 1,12.97,371/- to arm's

length price of above transaction resulting in increase of

returned income of Assessee and a draft assessment order

dated 28.12.2023 was passed under section 144C(1), inter-

alia, making transfer pricing addition as determined by Ld.

TPO.

5. It is submitted that being an eligible assessee as defined

under section 144C, Assessee filed detailed objections before

Ld. DRP. Directions came to be issued by Ld. DRP on

30.09.2024. It is submitted that without prejudice to other

contentions and grounds of appeal, it would show that Ld.

DRP granted relief to Assessee. On the other objections where

relief was not granted by Ld. DRP, Assessee has raised

grounds of appeal on merits before the Hon'ble Tribunal.

6. Ld. Counsel for the Assessee submitted that post receipt of

Ld. DRP's directions, assessment was completed by order

dated 28.10.2024 under section 143(3) read with section

144C(3) read with section 144 and attention is invited to paras

6 and 7 of the final assessment order at pg. 24. Ld. Counsel

submitted that it is unambiguously accepted therein, that the

additions made to returned income/loss is as per draft

assessment order and that Ld. TPO's order giving effect to DRP

directions is not received.

7. Ld. Counsel referring to section 144C(13), which also

prescribes statutory time limit for completion of assessment

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submitted that it is well settled that even Hon'ble Courts

cannot extend statutorily prescribed time limit and in present

case time limit for completion of assessment has lapsed long

back. The fact that impugned final assessment order is not in

conformity with directions of DRP cannot be disputed.

8. Ld. Counsel submitted that though plain reading of

sect