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2020 (2) TMI 897 - AT - Income TaxRevision u/s 263 - Non making reference to the TPO for determining arm’s length price of assessee’s specific domestic transactions - scope of amendment - HELD THAT:- In EVEREADY INDUSTRIES INDIA LTD. VERSUS PRINCIPAL COMMISSIONER OF INCOME-TAX, KOLKAT-4, KOLKATA. [2019 (12) TMI 1033 - ITAT KOLKATA] holds that such a reference prescribed in section 92BA(i) regarding “any expenditure in respect of which payment has been made or is to be made to a person referred to in clause (b) of sub- section (2) of section 40A” stands omitted by the Finance Act 2017 w.e.f 01.04.17 and therefore, the foregoing omission is applicable with retrospective effect in the impugned assessment year 2014-15 as well. PCIT has erred in law and as well as on facts in terming the above regular assessment dated 19.12.16 as erroneous causing prejudice to interest of the revenue qua the assessee’s specified domestic transaction not having subjected to section 92CA reference to the Transfer Pricing Officer. We make it clear that learned coordinate bench has already held in assessment year 2014-15 itself that the Finance Act 2017’s omission of section 92BA(i) carrying retrospective effect and therefore, such an inaction in not making reference to the TPO does not render the assessment erroneous causing prejudice to interest of the revenue. We accordingly reverse the PCIT’s revision directions therefore. - Decided in favour of assessee.
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