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2018 (11) TMI 1172 - AT - Income TaxRevision u/s 263 - non reference of matter to the Transfer Pricing Officer(TPO) - Held that:- It is settled law that the CBDT Circulars are binding on Revenue authorities. The assessee’s contention that in earlier years the matter was referred to the TPO, no transfer pricing adjustment was made, cannot at all be an excuse for the A.O. for not referring the matter to the TPO. As already explained herein above there is no discretion to the A.O. in this regard. Once it is so held the assessment order passed is clearly erroneous so as to be prejudicial to the interest of the Revenue. In the background of the aforesaid discussion, in our considered opinion, in light of the CBDT Circular Instruction 3/2016 dated 10th March, 2016, it was incumbent upon the A.O. to refer the transfer pricing matter to the TPO. The A.O. having failed to do so, the case admittedly falls under the jurisdiction of the Pr. CIT as an order by the A.O. which is erroneous so as to be prejudicial to the interest of the Revenue. - Decided against assessee
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