9911796707
TMI Blog2022 (5) TMI 1541X X X X Extracts X X X X X X X X Extracts X X X X ..... view mirror cable assemble and other automotive components. The real view mirrors and automotive components are supplied to the domestic market to Original Equipment Manufacturers [OEMs] whereas the rear view mirror assembles are exported to group companies. 5. The international transactions undertaken by the assessee with its Associated Enterprises [AEs] are summarized as under: Sl No Nature of Transactions Most Appropriate Method Amount International Transactions 1. Purchase of raw material TNMM 662,416,191 2. Sale of Goods TNMM 46,394,102 3. intra-Group Services rendered TNMM 25,031,218 4. Intra-Group Services received TNMM 49,965,923 5. Back Office engineering design services rendered CUP/ TNMM 27,473,968 6. ack Office support services rendered CUP/ TNMM 14,302,902 7. Engineering design services rendered TNMM 50,170,306 8. Engineering design services received TNMM 24,498,249 9 Reimbursement of expenses .paid CUP 384,S91 Specified Domestic Transactions 1 Purchase of raw materials TNMM 5,30,018519 2 Services received TNMM 73,494,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or is to be made to person referred to in clause (b) of sub section 2 of section 40A exceeds the prescribed limit, it would be a specified domestic transaction for which AO is required to make a reference to TPO under section 92CA of the Act for determination of the LP. In the instant case, since the transaction exceeds the prescribed limit it becomes the specified domestic transaction for which reference was made by the AO to the TPO under section 92CA for determination of the ALP. Consequently, the TPO submitted a report which was objected to by the learned counsel for the assessee and filed a objection before the ORP. Having adjudicated the objections. the ORP has issued certain directions and consequently the AO passed an order. Subsequently, by Finance Act, 2017 w.e.f. 01.04.2017, clause (i) of section 92BA was omitted from the statute. Now the question arises as to whether on account of omission of clause (i) from the statute, the proceedings already initiated or action taken under clause (i) becomes redundant or otiose. In this regard, our attention was invited to judgment of the Apex Court in the case of Kolhapur Canesugar Works Ltd., (supra) in which the impact of omission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other person. Benefit is to the undertaking and not to the person who is running the business. We do not see any merit in these appeals. The substantial question of law is answered in favour of the assessee and against the revenue. Accordingly, the appeals are dismissed. 9. From the aforesaid judgments, it has become abundantly clear that once a particular provision of section is omitted from the statute, it shall be deemed to be omitted from its inception unless and until there is some saving clause or provision to make it clear that action taken or proceeding initiated under that provision or section would continue and would not be left on account of omission. 10. In the instant case, undisputedly, by the Finance Act, 2017, clause (i) of section 92BA has been omitted w.e.f. 01.04.2017. Once this clause is omitted by subsequent amendment, it would be deemed that clause (i) was never been on the statute. While omitting the clause (i) of section 928A, nothing was specified whether the proceeding initiated or action taken on this continue. Therefore, the proceeding initiated or action taken under that clause would not survive at all. In this legal position, the cognizance taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leting a provision is to obliterate it from the statute-book as completely as if it had never been passed, and the statute must be considered as a law that never existed. To this rule, an exception is engrafted by the provisions of Section 6(1). If a provision of a statute is unconditionally omitted without a saving clause in favour of pending proceedings, all actions must stop where the omission finds them, and if final relief has not been granted before the omission goes into effect, it cannot be granted afterwards. Savings of the nature contained in Section 6 or in special Acts may modify the position. Thus the operation of repeal or deletion as to the future and the past largely depends on the savings applicable. In a case where a particular provision in a statute is omitted and in its place another provision dealing with the same contingency is introduced without a saving clause in favour of pending proceedings then it can be reasonably inferred that the intention of the legislature is that the pending proceedings shall not continue but fresh proceedings for the same purpose may be initiated under the new provision." 6. In fact, Coordinate Bench under similar circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
