Forgot password
New User/ Regiser
⇒ Register to get Live Demo
2011 (11) TMI 196 - DELHI HIGH COURT
Revision - Competency of Assessing Officer to determine the arm's length price of international transactions when aggregate value thereof exceeded ₹ 5 crores, without making reference to TPO – Validity of CIT assuming jurisdiction u/s 263 – Held that:- Instruction no.3 of the CBDT dated 25th May, 2003 states that wherever the aggregate value of international transaction exceeds ₹ 5 crores, the case should be picked up for scrutiny and reference under Section 92CA be made to the TPO. When circular is issued under Section 119 of the Act and its validity is upheld it is binding on the Assessing Officer. Not taking recourse thereto and passing the order amounted to making assessment without conducting proper inquiry and investigation as enjoyed by law which was also warranted in the facts of this case and, therefore, the Commissioner was right in holding that such assessment was erroneous and prejudicial to the interest of the Revenue. - Decided in favour of the Revenue