Case Note & Summary
The judgment pertains to two Income Tax Appeals filed by the Revenue under Section 260-A of the Income Tax Act, 1961. ITA No. 55/2024 arises from an order dated 31/05/2023 passed by the Income Tax Appellate Tribunal (ITAT) in IT(TP)A No.851/BANG/2022 for Assessment Year 2017-2018, concerning M/s Unisys India Pvt. Ltd. ITA No. 216/2023 arises from an order dated 31/05/2023 passed by the ITAT in IT(TP)A No.216/BANG/2023 for Assessment Year 2017-2018, concerning Shri H. K. Suresh. The Revenue challenged the ITAT orders deleting the transfer pricing adjustment and quashing the reassessment proceedings. The High Court, after hearing the parties, found no substantial question of law and dismissed both appeals.
Headnote
A) Income Tax - Transfer Pricing - Arm's Length Price - Section 92C of Income Tax Act, 1961 - The Revenue challenged the ITAT order deleting the transfer pricing adjustment made by the Assessing Officer. The High Court held that the ITAT had correctly applied the arm's length principle and no substantial question of law arose. (Paras 1-10) B) Income Tax - Reassessment - Non-Disclosure of Material Facts - Sections 147, 148 of Income Tax Act, 1961 - The Revenue challenged the ITAT order quashing reassessment proceedings. The High Court held that the reassessment was based on a change of opinion and there was no failure to disclose material facts. (Paras 1-10)
Issue of Consideration
Whether the Income Tax Appellate Tribunal was correct in deleting the transfer pricing adjustment and in quashing the reassessment proceedings.
Final Decision
Both appeals are dismissed. No substantial question of law arises.
Law Points
- Transfer pricing
- Arm's length price
- Reassessment
- Non-disclosure of material facts
- Section 260-A of Income Tax Act
- 1961
