2019 (11) TMI 1854

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....4/2019 (T-IT) - -<br>Income Tax<br>Hon'ble Mrs. Justice S. Sujatha For the Petitioner : Sri Suryanarayana. T., Adv. For the Respondents : Sri Jeevan J. Neeralgi, Adv. A/w Sri T.N.C. Sridhar, Adv. ORDER The petitioner has challenged the notice dated 18.09.2017 issued by the respondent No.&nbsp;1 under Section 148 read with Section 147 of the Income Tax Act, 1961 ['Act' for short] relati....

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.... the reasons recorded for re-opening of the assessment, the first respondent has furnished the reasons recorded for re-opening of the assessment. 3. In terms of the said reasons recorded, the first respondent was of the opinion that the petitioner had earned exempt income to the extent of Rs.&nbsp;2,53,16,921/- but had not made any disallowance of expenses corresponding to the same. Objecting t....

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....t. The reference made to the second respondent to make a TP adjustment is wholly illegal. The consequential order passed by the respondent No.&nbsp;2 under Section 92CA[3] of the Act is bad in law. 5. Learned counsel for the Revenue justifying the impugned action of the respondent-Authorities submitted that the respondent No.&nbsp;1 indeed has jurisdiction to re-open the assessment under Sectio....

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....on 147 of the Act do not indicate any escapement of income due to the wrong TP adjustment/arm's length price. On the other hand, it is confined to the disallowance under Section 14A of the Act. The action of the respondent No.&nbsp;1 in referring the matter to the respondent No.&nbsp;2 for TP adjustment cannot be countenanced at this stage. 9. Hence, the notice impugned at Annexures-E and K iss....