Adjustment u/s 92CA(3) of the Income Tax Act by the Transfer Pricing Officer

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH : I-2 : NEW DELHI
BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER
AND
SHRI KUL BHARAT, JUDICIAL MEMBER
ITA No.3618/Del/2017
Assessment Year: 2003-04

Xerox India Ltd.,
5th Floor, Block 1,
Vatika Business Park,
Sector-49, Sohna Road,
Gurgaon.
PAN: AAACM8634R

(Appellant)

vs

ACIT,
Central Circle-20,
New Delhi

(Respondent)

Assessee by : Shri Ajay Wadhwa, Advocate
Revenue by : Shri Shashi Bhusan Shukla, CIT, DR
Date of Hearing : 15.07.2021
Date of Pronouncement : 28.07.2021
ORDER

This appeal filed by the assessee is directed against the order dated 21st February, 2017 of the CIT(A)-38, New Delhi relating to assessment year 2003-04.

2.At the time of hearing, the ld. Counsel for the assessee did not press grounds No.2 to 4.4 for which the ld. DR has no objection. Accordingly, these grounds are dismissed as not pressed. Ground No.1 being general in nature is dismissed.
Ground No.6 being premature at this juncture is dismissed. Ground No.7 challenging charging of interest u/s 234B being mandatory and consequential in nature is dismissed.

3.Before the CIT(A), it was argued that while preparing the return of income for the impugned assessment year, the assessee offered for add back/disallowance of a sum of Rs.73,42,630/- towards freight expenses under the mistaken belief that these expenses which have been charged to the Profit & Loss Account of this year will not be borne by the assessee and will be eventually reversed in the books of account in subsequent years.

4.Based on the arguments advanced by the assessee, the ld.CIT(A) called for a remand report from the AO who opposed the admission of the additional ground on the plea that the assessee did not raise the issue during assessment proceedings and the assessee did not make the claim either in the original return of income for A.Y. 2003-04 filed on 02.12.2003 which was a belated return or never revised the return filed on 31.03.2005.

5.Various other decisions relied on by the ld. Counsel in the paper book also support the case to the proposition that the assessee can always make a new claim before the appellate authorities which was not claimed before the AO by filing a revised return of income.

6.In the result, the appeal filed by the assessees is partly allowed.
Pronounced in the open court on 28.07.2021

Please find attached the enclosed file for the full judgement.