TMI Blog2022 (1) TMI 1310X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ITA No. 7552/Del/2017 - - - Dated:- 10-1-2022 - Sh. Saktijit Dey, Judicial Member Dr. B. R. R. Kumar, Accountant Member Assessee by : None Revenue by : Sh. Mrinal Kumar Das, Sr. DR ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of ld. PCIT-1, New Delhi dated 05.06.2017. 2. Following grounds have been raised by the assessee: 1. That the learned Pr. Commissioner of Income Tax- 1,New Delhi has erred both in law and on facts in passing order under section 263 of the Income Tax Act, 1961 whereby assessment completed under section 143(3) vide order dated 19.02.2016 is set-aside with regard to computation of Arm s Length Price with the direction to the Assessing Officer to complete the assessment on the basis of Arm s Length Price determined by TPO under section 92C(3) of the Act in accordance with the provisions of section 92C(4) of the Act. 2. That the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011-12 pertaining to AY 2012-13. Hence, in view of the above remarks, no cumulative adjustment is being made in respect of international transaction with A.Es. After carefully considering all facts of the case and also submissions of the assessee, return income of the asseesee is accepted and assessed at income of Rs. Nil. Credit of pre-paid taxes/TDS as per 26AS is being proposed to be allowed while computing the tax liability. Interest as per applicable provisions of section 234A/234B/234C/234D is proposed to be charged. 4. Owing to non-addition of the amount adjusted by the TPO in his order passed u/s 92CA by the Assessing Officer ,the ld. PCIT passed order u/s 263. The order of the ld. PCIT is as under: A perusal of assessment records of the assessee for the AY 2012-13 reveals that the Assessing Officer did not make any such adjustment to the income of the assessee in accordance with the provisions of sub-section (4) of sect ion 92CA of the Act . The Assessing Officer, in accordance with the provisions of section 92C(4), was under obligation to make addition in conformity with the ALP so determined by the TPO u/s 92C(3) of the Act. The failure to make th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO to hold another investigation, without describing as to how the order of the AO is erroneous. Where the assessment order has been passed by the AO after taking into account assessee s submissions and documents furnished by him, and no material is brought on record by the CIT which shows that there was any discrepancy or falsity in the evidence furnished by the assessee, the order of the AO cannot be set aside . The submission of the AR of the assessee has been examined carefully. The ratio of the judgment relied upon by the AR is not applicable in this case. Hon ble Delhi High Court in the case of M/s Ranbaxy Laboratories Ltd vs. CIT (ITA No 504 of 2008) has held that Not taking recourse thereto and passing the order amounted to making assessment without conducting proper inquiry and investigation as enjoyed by law which was also warranted in the facts of this case and, therefore, the Commissioner was right in holding that such assessment was erroneous and prejudicial to the interest of the Revenue . In view of the decision of Hon ble Delhi High Court in the case of M/s Ranbaxy Laboratories Ltd. vs. CIT (ITA No. 504 of 2008), the assessment order dated 19.02.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... day of June, 1988, the powers of the Principal Commissioner or] Commissioner under this sub-section shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in such appeal . Explanation 2.-For the purposes of this section, it is hereby declared that an order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if , in the opinion of the Principal Commissioner or Commissioner,- (a) the order is passed without making inquiries or verification which should have been made; (b) the order is passed allowing any relief without inquiring into the claim; (c) the order has not been made in accordance with any order, direction or instruction issued by the Board under section 119; or (d) the order has not been passed in accordance with any decision which is prejudicial to the assessee, rendered by the jurisdictional High Court or Supreme Court in the case of the assessee or any other person. (2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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