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2016 (7) TMI 1587 - AT - Income TaxRevision u/s 263 - additions on account of TP adjustment in relation to transaction with AE - Assessment order is erroneous and prejudicial to the interest of revenue for this reason alone that he has not referred the international transaction between the assessee and its associated company i.e. M/s GLA Trading International PTE Ltd. for determination of ALP - HELD THAT:- CBDT Instruction No. 3 dated 20.05.2003 is not binding on the A.O. Hence, the action of the A.O. of himself determining the TP adjustment without referring the matter to the TPO in the present case is a possible view as per this tribunal order. In this view of the matter, the assessment order cannot be said to be erroneous because the view taken by the A.O. of not referring the matter to the TPO is a possible view as per this tribunal order. Learned DR of the revenue could not point out any other basis indicated by the learned CIT in the impugned order to say that the assessment order is erroneous. This is a settled position of law by now that revisionary powers of CIT u/s 263 can be invoked only when the assessment order is erroneous as well as prejudicial to the interest of the revenue. Since, in the present case, the assessment order could not be established to be erroneous, the impugned order of CIT u/s 263 is not sustainable - Appeal of the assessee is allowed.
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