Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 1310 - AT - Income TaxRevision u/s 263 - Owing to non-addition of the amount adjusted by the TPO in his order passed u/s 92CA by the Assessing Officer PCIT passed order u/s 263 - HELD THAT:- The reference to the TPO to determine the Arm’s Length Price is not an empty exercise to be undertaken by the revenue but to bring to tax the difference determined by the TPO with regard to the Arm’s Length Price. While the TPO order passed u/s 92CA determine upward adjustment we find that the AO has erred in holding that the adjustment by the TPO in respect of international taxation with the AE is Nil. Thus, the order passed by AO is erroneous insofar as it is prejudicial to the interest of revenue. Hence, the ld. PCIT in accordance with the provisions of the Act has given an opportunity of being heard to the assessee, determined the amount of the adjustment made by the TPO that was not brought to tax and set aside the order of the AO directing him to rectify the order to the extent of the adjustment made by the TPO. Since, the order of the PCIT has been rightly based on the order of the TPO which has been ignored by the Assessing Officer, we hold that the order of the AO is erroneous and prejudicial to the interest of the revenue and hence decline to interfere with the order of the ld. PCIT. Appeal of the assessee is dismissed.
|