Case Number: ITA 1321/DEL/2021
Appellant: YKK India Pvt. Ltd.
Respondent: Assistant Commissioner of Income-tax, Circle-27(2), New Delhi
Assessment Year: 2016-17
Case Filed On: 2021-10-05
Order Type: Final Tribunal Order
Date of Order: 2023-01-19
Pronounced On: 2023-01-19
YKK India Pvt. Ltd. filed an appeal against the order of the Assessing Officer, New Delhi concerning assessments made under sections 143(3) in conjunction with sections 143(3A) and 143(3B) of the Income Tax Act, 1961, for the assessment year 2016-17.
The appeal primarily focused on disputes related to transfer pricing adjustments and international transactions with its associated enterprises. During the appellate proceedings, the company decided to withdraw the appeal following the signing of a Unilateral Advance Pricing Agreement (APA) that covered all contested transactions from the assessment year 2015-16 to 2022-23.
At the hearing, the company presented a letter requesting withdrawal of the appeal based on the APA that resolved the underlying transfer pricing disputes. The Department of Revenue did not object to the withdrawal request. Consequently, the tribunal allowed the withdrawal and dismissed the appeal.
This case exemplifies how APAs can provide a resolution to transfer pricing disputes, offering companies a way to avoid prolonged litigation. The tribunal’s acknowledgment of the APA and dismissal of the appeal underscores the effectiveness of APAs in resolving complex tax disputes.
Order pronounced in the open court on 19/01/2023.
Judicial Member: Shri Yogesh Kumar US
Accountant Member: Dr. B. R. R. Kumar
Order Dated: 19/01/2023
YKK India Pvt. Ltd. vs ACIT: Appeal Withdrawal for Assessment Year 2016-17
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