PR. COMMISSIONER OF INCOME TAX vs DCM SHRIRAM LTD

Judgment text excerpt

IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 21.01.2025 + ITA 566/2023 PRINCIPAL COMMISSIONER OF INCOME TAX – 1, NEW DELHI .....Appellant Versus DCM SHRIRAM LTD. ....Respondent Advocates who appeared in this case: For the Appellant: Mr Induraj Singh Rai, SSC with Mr Sanjeev Menon, Mr Rahul Singh, and Mr Anmol Jagga, Advocates. For the Respondent: Mr S. Ganesh, Senior Advocate with Mr V.P. Gupta and Mr Anurav Kumar, Advocates. CORAM HON’BLE THE ACTING CHIEF JUSTICE HON’BLE MS JUSTICE SWARANA KANTA SHARMA JUDGMENT VIBHU BAKHRU, ACJ 1. The Revenue has filed the present appeal under Section 260A of the Income Tax Act, 1961 (hereafter the Act) impugning an order dated 28.10.2021 (hereafter the impugned order) passed by the learned Income Tax Appellate Tribunal (hereafter the ITAT) in ITA Signature Not Verified Digitally Signed By:RAM KUMAR ITA No.566/2023 Page 1 of 34 Signing Date:21.01.2025 16:58:28 No.7362/Del/2018 captioned DCM Shriram Ltd. v. Addl. CIT in respect of the assessment year (AY) 2014-15. QUESTIONS OF LAW 2. The Revenue had projected several questions of law for consideration of this court. However, this court had, by an order dated 02.05.2024, confined the present appeal to the following questions: “A. Whether on the facts and circumstances of the case and law, the Hon’ble ITAT has erred in law and on facts in deleting the adjustment proposed by the TPO on account of ALP adjustment of specified domestic transactions from Associated Enterprises for the A.Y 2014-15? B. Whether ITAT was right in deleting adjustments made on account of transfer of power as per the provision of section 92F r.w.s 80IA of the Act without appreciating that there was suitable selling CUP rate from the central agency in the field of power trading? 3. The learned ITA