Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2020 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 458 - HC - Income TaxRevision u/s 263 - AO himself determining the Transfer Pricing adjustment without referring the matter to the Transfer Pricing Officer - Whether Tribunal is right in holding that, CBDT Instruction No.3 dated 20.05.2003 is not binding on the AO and as such the AO himself determining the Transfer Pricing adjustment is justified and hence the order of assessment cannot be said to be erroneous in order to invoke the provisions of section 263 by the Commissioner of Income Tax? - HELD THAT:- A reference to the TPO is required to be made under Sub section (1) of Section 92CA. There is no amendment to the said Section. Shri Raghavan is right in his submission to the extent that sub section (4) of Section 92CA has been substituted with effect from 01.06.2007. No authority of the Supreme Court of India is cited to show that the position of law stated in S.G.ASIA 2019 (8) TMI 661 - SUPREME COURT has been altered. Therefore, in view of the unambiguous language employed in paragraph No.7 of S.G.ASIA extracted hereinabove, we are of the considered view that Instruction No.3/2003 issued by the CBDT is mandatory. The impugned order passed by the ITAT is clearly unsustainable in law as it runs counter to S.G.ASIA. 2019 (8) TMI 661 - SUPREME COURT Hence, we have considered the first question raised by the Revenue as a substantial question of law and answer the same in favour of the Revenue.
|