TMI Blog2017 (12) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision on a jurisdictional fact. That by itself implies that, the assessing officer while taking a decision on such jurisdictional fact, ought to afford a reasonable opportunity of hearing to the assessee concerned and thereafter pass a speaking order. AO not having afforded any opportunity of hearing to the first petitioner on the jurisdictional issue raised, it ought not to have transferred the matter to the TPO. The assessing officer has acted in breach of the principles of natural justice in doing so. The assumption of jurisdiction by the TPO and subsequently the ultimate reference to the dispute resolution panel are therefore at fault, in the facts of the present case. Thus setting aside the writing dated April 16, 2015 of the TPO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore transferring the matter to the Transfer Pricing Officer. In fact, he submits that, the assessing officer had issued a show cause notice dated March 11, 2015 requiring the first petitioner to submit written submission with sufficient evidence. The first petitioner had done so by its reply dated March 24, 2015. The first petitioner as the assessee did not hear from the assessing officer as to its decision on the subject. The first petitioner was surprised to receive the impugned notice dated April 16, 2015 from the TPO. The petitioners had also received an order of the TPO and a draft assessment order pursuant thereto. He submits that, the assessing officer not having decided the jurisdictional fact, there is an error in the exercise o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here are transactions requiring the attention of the TPO. The TPO had issued a notice dated April 16, 2015 calling upon the first petitioner to participate in the proceedings for the assessment of transfer pricing. The first petitioner had apparently participated therein. The petitioners had approached the Writ Court by way of present writ petition. An interim order dated March 29, 2016 was passed. By such order the petitioners were allowed to file their objection before the dispute resolution panel. The dispute resolution panel was restrained from completing the assessment for the relevant year without the previous leave of Court. The circular dated March 10, 2016 has come into being subsequent to the decision of the assessing officer t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r was not in vogue at the material point of time, the applicability of the principles of natural justice and the requirement of the assessing officer deciding on a jurisdictional fact cannot be denied. The section as it stands requires the assessing officer to take a decision on a jurisdictional fact. That by itself implies that, the assessing officer while taking a decision on such jurisdictional fact, ought to afford a reasonable opportunity of hearing to the assessee concerned and thereafter pass a speaking order. The assessing officer not having afforded any opportunity of hearing to the first petitioner on the jurisdictional issue raised, it ought not to have transferred the matter to the TPO. The assessing officer has acted in breach ..... X X X X Extracts X X X X X X X X Extracts X X X X
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