Pr Commissioner Of Income Tax, Delhi-2 v. M/S. Ciena India Pvt. Ltd

$~28 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 909/2017 & CM Nos.38871-38872/2017 PR COMMISSIONER OF INCOME TAX, DELHI-2 ..... Appellant Through: Mr. Zoheb Hossain, Sr. Standing Counsel for Revenue. Through: Mr. Zoheb Hossain, Sr. Standing Counsel for Revenue. versus M/S. CIENA INDIA PVT. LTD. ..... Respondent Through: None. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE SANJEEV SACHDEVA % O R D E R30.10.2017 Terming the deletion of `7,13,33,358/-, by the impugned order of the Income Tax Appellate Tribunal (ITAT) as an error in law, the Revenue appeals to this Court under Section 260A of the Income Tax Act. The Revenue urges that the amounts could not have been capitalized and that the corresponding amounts were not added to the cost of capital under Section 43A, in the closing balance to the previous year. This Court notices that the draft assessment order made under Section 144C by the Transfer Pricing Officer (TPO) was examined by the Dispute Resolution Panel (DRP) which affirmed the treatment of such capitalization. The DRP took into consideration the payment towards purchase of fixed assets (valued at `3,16,95,482/-) and also noticed that a sum of `3,96,37,875/- were re-instated on account of closing balance of creditors for fixed assets. These were examined by the ITAT. The DRP’s directions, are binding by virtue of Section 144C(10) of the Income Tax Act. In these circumstances and also noting that the ITAT examined the matter, after taking into account all the facts, the Court is of the opinion that no substantial question of law arises. The appeal is therefore dismissed. S. RAVINDRA BHAT, J OCTOBER 30, 2017 kks SANJEEV SACHDEVA, J