2019 (12) TMI 1312

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.... be passed on 30.06.2017 whereby the assessing officer had made transfer pricing adjustment and other additions. Assessing authority (for short 'AO') has made a reference to transfer pricing order under section 92CA of the Act to determine arms length price as the assessee had entered into specified domestic transaction and on the ground it was covered under section 92BA of the Act. Despite objections being filed by the assessee before Dispute Resolution Panel (for short 'DRP') directions came to be issued by DRP on 28.04.2017 (Annexure-B). Being aggrieved by the order, an appeal came to be filed before Income Tax Appellate Tribunal (ITAT) in Taxport Overseas (P.) Ltd. v. Dy. CIT IT (TP) A No. 1722 (Bang.) of 2017, dated 22-....

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....ection 8(2)(iii) of Income Tax Rules for a sum of Rs. 14,88,870/- by holding that there was no exempted income and as such disallowance could not have been made even though said provision was rightly invoked by AO, and as such setting aside the disallowance is erroneous. Hence, he prays for substantial question of law as formulated in the appeal memorandum (ITA 170/2019) be formulated, adjudicated and answered in favour of assessee. 5. Having heard learned Advocates appearing for parties and on perusal of records in general and order passed by tribunal in particular it is clearly noticeable that Clause (i) of section 92BA of the Act came to be omitted w.e.f. 01.04.2019 by Finance Act, 2014. As to whether omission would save the acts is a....

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....erred 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, Co-ordinate Bench under similar circumstances had examined the effect of omission of sub-section (9) to Section 10B of the Act w.e.f. 01.04.2004 by Finance Act, 2003 and held that there was no saving clause or provision introduced by way of amendment by omitting sub-section (9) of section 10B. In the matter of General Finance Co. v. ACIT, which judgment has also been taken note of by the tribunal while repelling the contention raised by revenue with regard to retrospectivity of section 92BA(i) of the Act. Thus, when clause (i) of Section 92BA havin....