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2015 (9) TMI 960 - AT - Income TaxValidity of Re-opening the assessment - income has escaped assessment is the adjustment worked out by the TPO under section 92CA of the Act, as per which adjustment was to be made to the total income and consequently income chargeable to tax had escaped assessment - Held that:- As relying on Maximize Learning (P.) Ltd. vs. ACIT [2015 (2) TMI 662 - ITAT PUNE] when no assessment proceedings were pending in relation to the relevant assessment year, the Assessing Officer was precluded from making a reference to the TPO under section 92CA(1) of the Act for the purposes of computing the arm's length price in relation to the international transaction. Consequently, order passed by the TPO under section 92CA(3) proposing an adjustment of ₹ 1,25,17,115/- to the arm's length price of the international transaction was a nullity in law and void ab initio. In view of the above-said facts and circumstances, such an order passed by the TPO was not a valid material for the Assessing Officer to entertain a belief that certain income chargeable to tax had escaped assessment within the meaning of section 147 of the Act. Consequently, we hold that the reasons recorded for reopening the assessment under section 147 of the Act do not meet the requirements of the section and hence the Assessing Officer had no jurisdiction to issue notice under section 148 of the Act. Consequently, the subsequent order passed by the Assessing Officer under section 143(3) r.w.s. 147 and 144C of the Act is liable to be quashed. Accordingly, we hold so. - Decided in favour of assessee.
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