TaxTMI 
TaxTMI 
2022 (1) TMI 1310
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....section 143(3) vide order dated 19.02.2016 is set-aside with regard to computation of Arm's Length Price with the direction to the Assessing Officer to complete the assessment on the basis of Arm's Length Price determined by TPO under section 92C(3) of the Act in accordance with the provisions of section 92C(4) of the Act. 2. That the learned Pr. Commissioner of Income Tax- 1,New Delhi has failed to appreciate that the assessment framed by the Assessing Officer was as per the position in law then prevailing at the time the assessment order was passed under section 143(3) on 19.02.2016 , that prior to amendment in sub-section (4) of Section 92CA by the Finance Act,2016 w.e.f . 01.06.2016 ,on receipt of order under sub-section (3) th....
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....the Income-tax Act, 1961, the international transaction entered into by the assessee with the Associated Enterprises was referred to the Transfer Pricing Officer (TPO) for determining the Arm's Length Price with the previous approval of the Commissioner of Income Tax, Delhi-I, New Delhi. The TPO has passed his order u/s 92CA(3) dated 29.01,2016 wherein he has not drawn any adverse inference in respect of arm's length price of the international transaction for the F.Y 2011-12 pertaining to AY 2012-13. Hence, in view of the above remarks, no cumulative adjustment is being made in respect of international transaction with A.Es. After carefully considering all facts of the case and also submissions of the assessee, return income o....
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....entative of the company Sh. Pramod Kaput CA attended on 10.04.2017 and the AR, on this date, filed a written submission. The gist of written submission is as under: "It is a matter of record that there is no lack of enquiry/investigation on the part of the Assessing Officer The order of the Assessing Officer is neither erroneous nor prejudicial to the interest of revenue. Therefore, the provision of section 263 of the Act cannot be invoked. The assessee has no control over the way an assessment order is drafted and since, generally, the issues which are accepted by the Assessing Officer do not find mention in the assessment order and only those points are taken note of on which the assessee's explanat ions are rejected and additions/d....
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....of the assessee has been examined carefully. The ratio of the judgment relied upon by the AR is not applicable in this case. Hon'ble Delhi High Court in the case of M/s Ranbaxy Laboratories Ltd vs. CIT (ITA No 504 of 2008) has held that "Not taking recourse thereto and passing the order amounted to making assessment without conducting proper inquiry and investigation as enjoyed by law which was also warranted in the facts of this case and, therefore, the Commissioner was right in holding that such assessment was erroneous and prejudicial to the interest of the Revenue" . In view of the decision of Hon'ble Delhi High Court in the case of M/s Ranbaxy Laboratories Ltd. vs. CIT (ITA No. 504 of 2008), the assessment order dated 19.02.2016 is ....
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....ssued by the Joint Commissioner under section 144A; (ii) an order made by the Joint Commissioner in exercise of the powers or in the performance of the functions of an Assessing Officer conferred on, or assigned to, him under the orders or directions issued by the Board or by the Principal Chief Commissioner or Chief Commissioner or Principal Director General or Director General or Principal Commissioner or Commissioner authorised by the Board in this behalf under section 120; (b) "record" shall include and shall be deemed always to have included all records relating to any proceeding under this Act available at the time of examination by the Principal Commissioner or Commissioner; (c) where any order referred to in this sub-sectio....
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....sequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal , National Tax Tribunal , the High Court or the Supreme Court. Explanation.-In computing the period of l imitation for the purposes of sub-section (2), the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded." 6. The reference to the TPO to determine the Arm's Length Price is not an empty exercise to be undertaken by the revenue but to bring to tax the difference determined by the TPO with regard to the Arm's Length Price. While the TPO order passed u/s 92C....