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Honda Trading Corporation India Pvt. Ltd. vs DCIT/ ACIT

Case No: ITA No.- 5286/Del/2024
Court: Income Tax Appellate Tribunal
Bench: Delhi Bench
Date: 2/4/2026

Parties Involved

assesseeHonda Trading Corporation India Pvt. Ltd.
revenueDCIT/ ACIT

Facts Summary

The assessee, Honda Trading Corporation India Pvt. Ltd., filed its return of income for AY 2021-22 declaring total income of Rs. 9,78,20,290/-. The case was selected for Complete Scrutiny through CASS. The assessee was primarily engaged in trading activities and service activities both in India and international markets. The AO referred the case to TPO due to TP risk parameters. The TPO proposed an adjustment of Rs. 12,49,16,249/- relating to the trading segment, which was later reduced to Rs. 11,57,97,707/-. The assessee appealed against this adjustment. Subsequently, the AO made an additional adjustment of Rs. 2,57,67,740/- on account of differential commission paid and received, which the assessee also appealed against.

Decision in favour of

Assessee

Legal Issues

  • 1. Adjustment of Rs. 11,57,97,707/- on account of trading segment
  • 2. Adjustment of Rs. 2,57,67,740/- on account of differential commission paid/received
  • 3. Interest levied under sections 234A, 234B, and 234C
  • 4. Penalty proceedings under section 270A

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

7 precedents cited in this judgement.

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