TaxTMI 
TaxTMI 
2026 (8) TMI 751
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....-17 pursuant to the directions of the Dispute Resolution Panel u/s 144C (5) of the Act raising the following grounds of appeal :- "a. The subject transaction in assessment order is not specified domestic transaction in the light of the binding order pronounced by Hon'ble ITAT Bangalore in M/s. Texport Overseas Private Limited Vs. The Deputy Commissioner of Income Tax. The Hon'ble DRP-2 issued the direction on 09.03.2021 whereas, the objection no. 4 was rejected by stating the reasons as below:- 3.2. The submission of the assessee in regard to section 92BA(i) being omitted by Finance Act, 2017 and that the same has to be understood that it had never existed in the statute book does not have force in view of....
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....tainable in the eyes of law. The direction issued by the DRP states by quoting the Explanatory Notes to the Finance Act (Circular No. 2/2018 dt. 15/02/2018) that the amendment in section 92BA of the Act is applicable from the assessment year 2017-18 and. subsequent years. However, in Hon'ble ITAT Bangalore in its order, as stated above, held that Once this clause is omitted by subsequent amendment, it would be deemed that clause (i) was never been on the statute. While omitting the clause (i) of section 92BA, IT(TP)A No. 2213/Bang(2018 nothing was specified whether the proceeding initiated or action taken on this continue. Therefore, the proceeding initiated or action taken under that clause would not survive at all. H....
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....seas Pvt. Ltd. in ITA No.392/2018 along with ITA No.170/2019 vide order dated 12.12.2019 wherein it was held that the findings of ITAT in the abovesaid assessee was justified. He submitted that he relied on the abvoesaid detailed findings. Since the assessment year under consideration is AY 2016-17, he relied on the detailed findings of the ITAT, Bangalore in the case of M/s. Texport Overseas Pvt. Ltd. which is relating to AY 2013-14. He prayed that the appeal of the assessee may be allowed and he further submitted that the abovesaid decision was relied by the other ITAT Benches viz. ITAT, Chennai Bench in ACIT vs. M/s. Orient Green Power Company Ltd. in ITA No.230/Chny/2025 order dated 15.05.2025, ITAT, Ahmedabad Bench in ITA No.881/Ahd/20....
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.... be excluded from the scope of section 92BA of the Income-tax Act. Consequential amendment has also been made to section 40(A)(2)(a) of the Income-tax Act. 44.4 Applicability : These amendments take effect from 1st April, 2017 and will, accordingly, apply from assessment year 2017-18 and subsequent assessment years." 4. Considered the rival submissions and material placed on record. We noticed that the provisions of section 92CA (1) was amended by Finance Act, 2017. The relevant impact of such amendment was held by the ITAT, Bangalore Bench in the case of Texport Overseas Private Ltd. (supra) on the exact similar facts on record held as under :- "10. In the instant case, undisputedly, by the Finance Act, 2017, clause (i....
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.... to be made to person referred to in clause (b) of sub section 2 of section 40A of the Act. Accordingly, since we have restored the matter to the AO, we find no justification to deal with the other issues on merit. Accordingly, appeal of the assessee stand allowed for statistical purposes." 5. The above decision was upheld by the Hon'ble Karnataka High Court and held as under :- "6. In fact, Coordinate Bench under similar circumstances had examined the effect of omission of sub-section (9) to Section l0B 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 l0B. In the matter of GENERAL FINANCE CO. vs. ACIT, wh....