TaxTMI 
TaxTMI 
2019 (12) TMI 205
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.... the Ld. CIT has erred in setting aside the order of the A.O. passed u/s 143(3) of the I.T. Act, for examinations of the large specified domestic transactions allegedly holding it erroneous in so far as prejudicial to interest of revenue. The order passed by CIT-1 Indore u/s 263 of the I.T. Act, is bad in law and facts, requires to be quashed in full. The appellant crave to add, amend or alter any of the ground stated above, either before or at the time of hearing of appeal. 2. The only effective ground in this appeal is against setting aside the order passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter called as 'the Act') by invoking the provisions of section 263 of the Act. The facts giving rise to the present appeal a....
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....egard to the opinion of the Ld. CIT that the A.O. failed to refer the specified domestic transactions to the TPO. We find that the identical issue was before this Tribunal in the case of Swastik Coal Corporation Pvt. Ltd. Vs. PCIT (supra) in which the Tribunal decided the issue as under: 4. Taking a consistent view, we hereby set aside the order of Ld. Pr. CIT as the assessment order is not prejudicial to the interest of revenue. 5. In the result, the appeal filed by the assessee is allowed. Order was pronounced in the open court on 21.11.2019. ============= Document 1 6. If we apply the ratio held down by the Hon'ble Apex Court in the case of Malabar Industrial Co. Ltd. (supra) on the facts of the present case there would ....
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....s referred the CBDT instructions No. 3 of 2016 dated 10.03.2016 and explanation No. 2 to Section 263 of the Act to answer this question. There is also another aspect of the matter that the transaction of sale and purchase has two limbs namely sale and purchase. The sale of one party would be purchase of another or vice versa. The underlined fact remains in such transaction is that it is between the two related or associated parties. Hence, the transaction is not free. It is under some influence or control. If the transaction is not attached with any other motive or is not used as a device to avoid taxability of profit or gain, then there would have been no need to find out the arm's length price of such transaction. But wh....
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....n the case of Kolhapur Cane Sugar Works Limited v. UOI, (2000) 2 SCC 536. The Hon'ble Apex Court in General Finance Company v. ACIT (supra) after considering the submissions of the Ld. Counsel for the revenue in that case held as under: "8. Though we find the submissions of the learned counsel to be forceful, we are constrained to follow the two decisions of the onstitution Benches of this Court in Rayala Corpn. (P) Ltd.'s case (supra) and Kolhapur Canesugar Works Ltd.'s case (supra). This view has held that field for over three decades and reiterated even as late as two years ago. Non-compliance with Section 269SS attracted prosecution as well as penalty. Omission of the provision regarding prosecution will not affect ....
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....ssed to tax at maximum rate at therefore, there was no loss to the revenue. It has also been submitted by the assessee that the transactions of the party, with whom the specified domestic transaction was carried out, have been examined by the TPO in case of that party. Accordingly, this case need not be examined separately for the same transaction with that party as no adjustment was recommended by the TPO in that case. It has also been submitted by the assessee that the provisions of Section 92BA(i) have been omitted by Finance Act, 2017 and in the case of Taxport Overseas P. Ltd. [IT(TD)A No. 1722/Bang/2017 it has been held that this clause was never been on the statute. Accordingly, he has requested that 263 order sh....