IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘I’ BENCH, NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER (Assessment Year- 2011-12)

Deputy Commissioner of M/s Arkadin confer India Income Tax, Vs. Pvt. Ltd., Circle 3(1), B-106, Sector-2, Noida-

New Delhi. 201301.

PAN No: AABCD9889L APPELLANT RESPONDENT Assessee by : None Revenue by : Shri Dharm Veer Singh, CIT(DR)

Date of Hearing : 03.03.2026 Date of Pronouncement: 18.03.2026 ORDER PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-

This appeal by the Revenue is preferred against the order of the Ld.

Commissioner of Income Tax (Appeals)-1, New Delhi [hereinafter referred to as the ‘Ld. CIT(A)’], dated 10.08.2015 arising out the assessment order dated 20.03.2014 passed u/s 143(3) of the Income Tax Act, 1961(hereinafter referred to as the “Act”] by the Deputy Commissioner of Income Tax, Circle 2(1) (hereinafter referred to as ‘AO’) pertaining to Assessment Year (AY) 2011-12.

2. None appeared on behalf of the assessee; therefore, we decided to hear the case ex parte with the able assistance of the Ld. DR. We have carefully perused the material available on record.

3. The sole issue involved in the Revenue’s appeal is the deletion of an amount of Rs. 7,05,54,285/- on account of adjustment to the Arm’s Length Price (ALP). The ld DR explained that the Revenue had filed a Miscellaneous Application u/s 254(2) of the IT Act, 1961 arising out of the Tribunal order dated 20.01.2020 passed in ITA No.6037/Del/2015 for AY 2011-12 in assessee’s own case, wherein the ITAT vide order dated 27.06.2025 was pleased to recall the said ITAT order on account of non-consideration of ratio of the Hon'ble Supreme Court in M/s SG Asia Holding (India) Pvt. Ltd. in Civil Appeal No.6144 of 2009, order dated 30.08.2018. The ratio of the hon’ble Supreme Court was that where the international transaction was above Rs.5 crores, same should have been referred to Id. TPO for determination of arm's length price of the international transaction and the Tribunal ought to have restored the issue to the file of AO, so that appropriate reference could be made to the TPO.

4. We have carefully perused the material available on record. The issue for adjudication is ascertaining of the Arm’s Length Price of international transactions. In the instant case, we find that the arm’s length adjustment in respect of the international transaction was not referred to the TPO even though the valuation of the international transactions exceeded Rs. 5 crores. We therefore, following the decision of the Hon’ble Supreme Court in the case of SG Asia Holdings (India) Pvt. Ltd (supra), set aside the issue to the file of the AO with a direction to refer the matter to the TPO for determining the ALP of the international transactions in accordance with law.

5. In the result, the appeal of the Revenue in ITA No:- 6037/Del/2015 is allowed for statistical purposes.

Order is pronounced in the Open Court on 18^th March’ 2026.

Sd/- Sd/-

[ANUBHAV SHARMA] [NAVEEN CHANDRA]

JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18.03.2026 Pooja/-Copy forwarded to:

1. Appellant

2. Respondent

3. CIT

4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi