ITA 6198 & 6199 /DEL/2026

Parties Involved

Facts Summary

The case involves an appeal by Azure Green Tech Private Limited against the order of the Principal Commissioner of Income Tax (PCIT) for assessment years 2020-21 and 2021-22. The assessee, a subsidiary of Azure Power India Private Limited, had filed its return of income declaring nil income after set-off of brought forward business losses and unabsorbed depreciation. The case was selected for complete scrutiny under CASS, focusing on international related party transactions and foreign outward remittances. The Assessing Officer issued a notice for details of foreign remittances and TDS deducted. The Transfer Pricing Officer proposed an adjustment of Rs. 5,37,96,330/- out of the interest payable to Azure Power Energy Ltd, Mauritius. The PCIT issued a show cause notice proposing to revise the assessment order on the ground of short deduction of tax at source on interest paid to Azure Power Energy Ltd, Mauritius. The assessee objected to the assumption of jurisdiction and sought a personal hearing.…

Legal Issues

• 1. Whether the PCIT was justified in invoking revision jurisdiction under section 263 of the Act on account of short deduction of TDS on the transaction of interest paid by the assessee.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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