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2018 (10) TMI 375 - HC - Income TaxTransfer pricing - Validity of order passed by the TPO without considering the objection raised by the petitioner - Power of the Dispute Resolution Panel (DRP) u/s 144C in giving direction to AO - Manner in which such power has to be exercised - Held that:- Perusal of the procedure contemplated under Sub-Section 6 and Sub-Section 7 of section 144C thus, would clearly indicate that issuance of such directions as contemplated under Sub-Section 5, cannot be made mechanically or as an empty formality and on the other hand, it has to be done only after considering the above stated materials. Consideration of the above materials by the Dispute Resolution Panel must be apparent on the face of the order and such exercise would be evident only when the order contains the discussion of facts and independent findings on those facts, by the Dispute Resolution Panel. Certainly mere extraction of the rival contentions will not satisfy the requirement of consideration. In the absence of any such independent reasoning and finding, it should be construed that the Dispute Resolution Panel has not exercised its power and issued directions by following the mandatory requirements contemplated under Section 144C(6) and (7). This Court is fully convinced that the matter has to go back to the first respondent for consideration of the objections raised by the petitioner in detail and to pass a fresh order on merits and in accordance with law with reasons and independent findings.
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