2019 (3) TMI 135

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....oprietary concern engaged in purchase of raw cashew nuts from abroad and export of processed cashew kernels. This appeal pertains to the assessment year 2003-04. The Assessing Officer (for short "AO") had made an addition of Rs. 23,72,129/- vide Annexure B under Section 92C(4) of the Income Tax Act, 1961 (for short "the Act") as income from international transactions based on the decision of the Transfer Pricing Officer (TPO) under Section 92CA(3) dated 16.03.2006 at Annexure A, wherein Arm's Length Price (ALP) was fixed by the TPO. The appeal before the Commissioner of Income Tax (Appeals), Thiruvananthapuram failed and the assessment of the AO was confirmed vide Annexure C order dated 23.11.2006. The second appeal preferred by the ass....

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....ance to the prices at which the appellant had purchased the raw-materials. It is then found that the difference was more than 5%, and therefore, the objection of the assessee regarding fixation of ALP is not sustainable. 6. We heard the learned Senior Counsel, Government of India (Taxes) and the learned Counsel for the appellant. 7. The contention raised by the assessee that there was an embargo in referring the issue to the TPO for reason of the Instructions issued by the CBDT was dealt with elaborately, both by the first appellate authority and the Tribunal. Instruction No.3 of the CBDT dated 20.05.2003 required references to the TPO, if the value of international transaction exceeded Rs. 5 crores. There is, however, no prohibition inso....