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2023 (6) TMI 623 - BOMBAY HIGH COURTReopening of assessment u/s 147 - reference made to the TPO for determining the arms length price of the international transaction - HELD THAT:- AO can make reference to the TPO u/s 92CA of the Act only after selecting the case for scrutiny assessment. The instructions of CBDT is also a pointer to the legislative import that the reference to the TPO for determining the arm’s length price in relation to an international transaction is envisaged only in the course of the assessment proceedings, which is the only process known to the Act, whereby the assessment of total income is done. Therefore, Tribunal was correct to hold that when reference was made to the TPO by AO for determination of arm’s length price in relation to the international transaction, no assessment proceedings were pending and hence it was invalid reference. The subsequent order passed by the TPO determining the assessment to the international transaction was a nullity in law and void ab initio. AO could not have relied upon an order of the TPO which is a nullity to form a belief that certain income chargeable to tax has escaped the assessment for the relevant Assessment Year. No substantial questions of law arise.
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