2021 (1) TMI 202 - ITAT MUMBAI - Income Tax

Head Note / Extract:
Legality of reference to the Transfer Pricing Officer - case of the assessee was not selected for any scrutiny assessment proceedings and AO made a reference to the Transfer Pricing Officer u/s. 92CA(1) never the less but admittedly while making this reference he did not obtain the prior approval of the Commissioner or the Principal Commissioner of the Income Tax - on receipt of Transfer Pricing Officer’s order, he reopened the assessment u/s. 147 and proceeded to make ALP adjustment on the basis of this TPO order - HELD THAT:- We find that the very assumption of jurisdiction to make reference to the TPO is clearly vitiated in law in as much as neither any proceedings were pending before the Assessing Officer nor any approval of the Commissioner or the Principal Commissioner of the Income Tax was taken in the present case. Once we come to conclusion that the assumption of jurisdiction for making a reference to TPO itself was vitiated in law, no other valid legal consequences can flow from the same. The conclusions arrived at by the learned CIT(A), therefore cannot be faulted. We therefore, confirm the well reasoned conclusion arrived at by the learned CIT(A) decline to interfere in the matter.