Beam Global Spirits and Wine (India) Private Limited vs Principal Commissioner of Income-tax (PCIT)-1, Delhi

Parties Involved

Facts Summary

For the assessment year 2018-19, the assessee, Beam Global Spirits and Wine (India) Private Limited, filed its return of income electronically on 30.11.2018 disclosing a loss of (-) Rs. 40,10,37,756/-. Subsequently, the return was revised on 28.03.2019 disclosing a loss of (-) Rs. 40,29,85,156/-. The case was selected for scrutiny under CASS and statutory notices under sections 143(2) and 142(1) of the Income-tax Act were issued. The Assessing Officer noticed that the assessee had undertaken international transactions with its associated enterprises during the assessment year. Accordingly, the case was referred to the Transfer Pricing Officer (TPO) for determining the Arm's Length Price under section 92CA of the I.T. Act. The TPO made adjustments to the value of international transactions. Aggrieved by the draft assessment order, the assessee filed objections before the Dispute Resolution Panel (DRP)-1, Delhi, which upheld the adjustments made by the TPO. The Assessing Officer then made an addition of Rs. 35,24,63,309/- on account of upward adjustments of ALP under section 92CA to the income returned by the assessee. The Principal Commissioner of Income Tax (PCIT) initiated proceedings under section 263 of the Act, alleging that the order of the Assessing Officer was erroneous and prejudicial to the interests of the revenue. After considering the submissions, the PCIT set aside certain matters to the file of the AO for further verification and inquiry.…

Legal Issues

• 1. Whether the order passed by the Principal Commissioner of Income Tax is without jurisdiction, bad in law, and void ab initio.
• 2. Whether the PCIT erred in setting aside the assessment on various issues without proper verification and inquiry by the Assessing Officer.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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