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2022 (12) TMI 1205 - AT - Income TaxTP Adjustment - unauthorized reference to TPO u/s 92CA(3) - HELD THAT:- AO in the instant case, made a reference to the TPO for computation of Arms Length Price with reference to the impugned domestic transactions entered into by the assessee as defined u/s 92BA - An order from the TPO was obtained u/s 92A(3) of the Act in pursuance of such reference. It is the case of the assessee that reference made to the TPO in the instant case without fulfilling the conditions of threshold of Rs.5 crore monetary limit is without the sanction of law in view of the Section 92BA - This being so, the assessee is not entitled for extension of time limit provided u/s 153(4) by extended period of another one year which is applicable only where the reference to the TPO has been validly made within the frame work of law. We find palpable merit in the plea expounded on behalf of the assessee. It has been demonstrated in the instant case that the threshold monetary limit of Rs.5 crore was not available to the Assessing Officer to characterize the transactions with AE as SDT to enable him to make a reference to the TPO. The order of the TPO u/s 92CA(3) is thus a nonest and a nullity in the eyes of law. Consequently, the extension of time under erstwhile provisions of Section 153 for passing the assessment order based on such nonest order from TPO is not available to the AO in the instant case. AO thus could not legitimise the assessment order passed beyond the ordinary time limit of 31.12.2016 available under Section 153 of the Act. The impugned assessment order passed is barred by limitation and hence bad in law and thus requires to be quashed - Appeal of the assessee is allowed.
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