2014 (3) TMI 954

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....f chemicals used in oil and gas exploration industry. The assessee filed its return of income for the AY.2008-09 on 27-09-2008 declaring its total income as Rs. 4,56,64,700/-. The case of the assessee was selected for scrutiny and notice u/s. 143(2) of the Act was issued to the assessee on 11-09-2008. Since the assessee had entered into certain international transactions, the case of the assessee was referred to the Transfer Pricing Officer [TPO] to determine the Arm's Length Price [ALP]. Before referring the matter to TPO, the Assessing Officer on the basis of the information available on the website of M/s. Oren Hydro Carbon Middle East Incorporation held that, Mr. Rizwan Ahmed who is the Managing Director of the assessee-company is a....

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....t the overseas company is AE of the assessee-company. The ld.Counsel further submitted that Mr. Rizwan Ahmed, the Managing Director of the assessee was appointed as Chairman and Managing Director of M/s. Oren Hydro Carbon Middle East Incorporation in the period relevant to the AY.2009-10. Therefore, in the AY under consideration, there was no relationship of AE with the overseas company. The ld.Counsel further contended the objection was raised before TPO but the TPO refused to consider the same on primacies determination of existence of AE relationship comes within the purview of the jurisdiction of AO. The TPO without answering the question proceeded to determine ALP of AE exports. The DRP also brushed aside the evidence furnished by the ....

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....the Act in the Financial Year 2007-08 with M/s. Oren Hydro Carbon Middle East Incorporation. The TPO proceeded with the determination of ALP of the AE exports with the following observations:      "The existence of AE relationship or not comes within the purview of Assessing Officer jurisdiction. Hence, as TPO, as the case is referred to TP u/s.92CA(1), I am proceeding further to determine the ALP of AE exports as follows". This clearly shows that the TPO has not applied his mind to the objection raised by the assessee before proceeding with the determination of ALP. 6. Assessee again raised objection before DRP with regard to AE relationship and placed on record letter dated 09-05-2012 from M/s. Oren Hydro Carb....