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2015 (9) TMI 1529 - HC - Income TaxValidity of re-assessment proceedings - reference made by the AO to the TPO - Held that:- Section 92 CA (1) of the Act states that where any person "being the assessee" has entered into an international transaction "in any previous year" and the AO considers it necessary or expedient to do so, he may with the previous approval of the Commissioner refer the "computation" of ALP to the TPO under Section 92 C. These provisions proceed on the premise that the AO is in seisin of assessment proceedings when he forms an opinion about referring the issue of determination of ALP to the TPO. They do not envisage the AO making a reference to the TPO the issue of determination of ALP when there is no assessment proceedings pending before him. In the present case, the reference by the AO of the issue of determination of ALP to the TPO was itself without jurisdiction. The resultant report of the TPO could not be acted upon for issuance of the notice of re-assessment to the Assessee under Section 148 of the Act. Moreover, in the present case, the Court notices that the reasons for reopening were recorded by the AO subsequent to the reply received from the Assessee to the notice. Consequently, the Court finds no legal infirmity in the impugned order of the ITAT holding that the re-assessment proceedings were legally unsustainable. - Decided in favour of assessee
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