Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 1303 - MADHYA PRADESH HIGH COURTPrevious approval of the Commissioner of Income Tax to make reference to the Transfer Pricing Officer for computation of Arm's Length Price - Held that:- The respondent no.1 sent a reference under Section 92CA(1) of the Income Tax Act vide letter no. Addl CIT/R/Ind/2010-11/460 dated 22-3-2011 observing that in the opinion of the first respondent, it was necessary and expedient to refer the case to the second respondent to determine Arm's Length Price of international transactions. On verification of the audit report in Form No.3 CEB furnished by the petitioner, it was found that the assessee petitioner had entered into international transaction specified under section 92CA of Income Tax Act of substantial magnitude. After careful examination of the reference, the respondent No.3 has correctly accorded approval on the reference received from the respondent no.1 which was based on the contents of the Audit Report in Form No.3CEB. The transaction is more than ₹ 15 crores and therefore covered for reference to the Transfer Pricing Officer ie., respondent no.2. The approval is granted by the respondent no.3 after careful examination of the justification given by the respondent No.1 on the reference and also keeping in view the CBDT's instructions on the subject which mandates for such reference. Since the present writ petition raises similar grounds for assessment year 2010-11 which has already been decided by this court passing a detailed order, we are of the view that the contention of the petitioner that no approval is granted by the respondent No.3, ie., Commissioner of Income-tax – I is without any basis and has no merit. The issue raised in this petition is squarely covered by the writ petition decided by this court and the matter is pending before the Hon'ble Supreme Court. The petitioner has adopted a novel method by filing an application for withdrawal of the writ petition. In the present case this court by order dated 28.2.2014 granted stay directing the assessing authority not to proceed with the assessment proceedings. In the meanwhile, the application was filed before the settlement authority and when the proceedings of settlement authority is coming to end an application for withdrawal is filed with a prayer that the petitioner be permitted to withdraw the writ petition with liberty to move this Hon'ble Court if the settlement fails. The present writ petition is merely an attempt to by pass the normal process of orders and appeal as laid down in the Income-Tax Act and cause undue loss to revenue.
|