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Judgment
PER SANJAY AWASTHI, ACCOUNTANT MEMBER:
This appeal arises from order passed by AO-NFAC, dated 26.07.2024, u/s 143(3) read with section 144C(13) r.w.s. 144B of the Income Tax Act, 1961 (hereafter as “the Act”).
In this case, following the DRP’s directions dated 26.06.2024, the Ld. AO made an addition of Rs.50,19,930/- on account of variation in respect of TP Adjustment.
The aggrieved assessee has approached the ITAT with as many as 12 grounds challenging the said adjustment on merits as also on legal grounds.
It deserves to be mentioned that the hearing in this matter was concluded on 10.08.2026 after a detailed hearing. However, vide letter dated 17.08.2026 the Ld. AR for the assessee filed a letter as under: -
“Sub: Honda R&D India Private Limited Appeal No. ITA 4410/DEL/2024 Relating to Assessment Year : AY 2020-21 Bench: ‘I’ – Heard on 10.08.2026 ………………………………………………………………………………………………………… Please find attached order giving effect passed by Ld. Transfer Pricing Officer pursuant to remand direction of Hon’ble ITAT in relating to AY 2021-22 [Annexure A] granting complete relief involving identical issue. As said Order giving effect was received post hearing of Appeal No. ITA 4410/DEL/2024, on 10.08.2026 this may kindly be taken on record and placed before Hon’ble Members on that day (Hon’ble Judicial Member Mrs. Kavitha Rajagopal & Hon’ble Accountant Member Mr. Sanjay Awasthi) for appropriate consideration. We are filing a copy of same with Ld. Departmental Representative’s office for their reference and record. We would be most obliged.”
A perusal of the order dated 14.08.2026 passed by DC/ACIT TP 2(1)(1), Delhi for AY 2021-22 reveals that indeed the assessee’s contentions on identical grounds, as seen for the year under consideration (AY 2020-21), have been accepted and no adverse inference has been drawn. For the sake of reference, the relevant portions from the TP’s order are extracted as under: -
“4.Following the aforesaid directions issued by the Hon’ble High Court and Hon’ble ITAT, since the matter was remitted back to the file of the TPO with direction to verify the additional evidences placed on record by the assessee and redo the TP study, a fresh reference was received in this case from the JAO. Consequently, in pursuance to fresh set aside proceedings in this case, notice dated 31.07.2026 was issued giving an opportunity to the assessee to file its submission. In response to said notice, the assessee submitted its reply on 07.08.2026.
5.The submission made by the assessee has been considered and perused. After examination of transfer pricing documentation placed on record and considering economic analysis contained therein, no adverse inference is drawn in respect of Arm’s Length Price of the international transactions for the year under consideration i.e. AY 2021-22.
This order is passed u/s 92CA(3) r.w.s. 254 of the I.T. Act, 1961 with the necessary approval of the Addl. CIT(TP)-2(1), New Delhi.”
Since the grievance of the assessee is seen to be settled for AY 2021-22 on similar facts as compared to AY 2020-21, being the year under adjudication at present, we deem it fit to remand this matter back to the file of Ld. AO/TPO for granting appropriate relief in line with the order dated 14.08.2026 for AY 2021-22. We direct accordingly.
In the result, the appeal is partly allowed for statistical purposes.