https://www.taxtmi.com/caselaws?id=753187 ITAT Rajkot held that the 2022 amendment to section 263 was clarificatory and retrospective, enabling CIT to revise TPO orders under section 92CA. The amendment addressed jurisdictional lacuna identified in Essar Steels Ltd case regarding CIT's administrative authority over TPO. Regarding the substantive issue, ITAT confirmed CIT's finding that TPO erroneously accepted interest on compulsorily convertible debentures (CCDs) as arm's length without proper inquiry. The CCDs were hybrid instruments, not pure debt, making assessee's comparability exercise with debt instruments incorrect. TPO's acceptance contradicted treatment in four preceding years where identical transactions required upward adjustment. Appeal dismissed. en-us Tue, 21 May 2024 00:00:00 +0530 Mon, 27 May 2024 11:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753187 ITAT Rajkot held that the 2022 amendment to section 263 was clarificatory and retrospective, enabling CIT to revise TPO orders under section 92CA. The amendment addressed jurisdictional lacuna identified in Essar Steels Ltd case regarding CIT's administrative authority over TPO. Regarding the substantive issue, ITAT confirmed CIT's finding that TPO erroneously accepted interest on compulsorily convertible debentures (CCDs) as arm's length without proper inquiry. The CCDs were hybrid instruments, not pure debt, making assessee's comparability exercise with debt instruments incorrect. TPO's acceptance contradicted treatment in four preceding years where identical transactions required upward adjustment. Appeal dismissed. Case-Laws Income Tax Tue, 21 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753187