TaxTMI 
TaxTMI 
2026 (9) TMI 60
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....by the Transfer Pricing Officer (Respondent No. 1) under Section 92CA(3) of the Income Tax Act, 1961 ("the Act") for the Assessment Year 2020-21. The main challenge in the petition is that the impugned order has been passed by Respondent No. 1 contrary to the principles of natural justice as the mandatory Show Cause Notice required to be issued under Section 92CA(3) read with Section 92C(3) of the Act was not served on the Petitioner before passing the impugned order, and therefore, the Petitioner was not given an opportunity of being heard. 3. The facts relevant to the present petition are that the Petitioner's case for the relevant Assessment Year was selected for scrutiny assessment. During the course of the scrutiny assessment procee....
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..... 5. In this factual backdrop, Mr. Agrawal, learned counsel appearing on behalf of the Petitioner, submitted that the Show Cause Notice issued by Respondent No. 1 under Section 92C(3) of the Act is a statutory notice which is required to be issued to an Assessee before passing the order under Section 92CA(3) of the Act. He submitted that the Show Cause Notice was neither served on the Petitioner nor was the said Show Cause Notice uploaded in the Income-tax Portal of the Petitioner. The Petitioner came to know that a Show Cause Notice dated 28th February 2023 under Section 92C(3) of the Act was issued only because the same was referred to in the impugned order passed under Section 92CA(3) of the Act by the Transfer Pricing Officer (Respon....
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....ice was not visible on the e-filing portal of the Petitioner. Further the SMS was also not generated because of the aforesaid unknown technical issue. Accordingly, there is no doubt that the Show Cause Notice was not served on the Petitioner before passing of the impugned order, was the submission. 7. Per contra, Mr. Suresh Kumar, learned counsel appearing on behalf of the Revenue, fairly admitted that the Show Cause Notice dated 28th February 2023 was not served on the Petitioner though he submitted that earlier notices were served on the Petitioner and the Petitioner had filed replies to the said notices. 8. We have heard both parties at length and also perused the documents, proceedings and affidavits filed by the parties in the pr....
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....ter of computation of the Arm's Length Price in relation to an international transaction or a specified domestic transaction to the Transfer Pricing Officer, when he considers it necessary or expedient to do so. Sub-section (2) of Section 92CA provides that the Transfer Pricing Officer shall serve a notice on an Assessee requiring him to produce evidence which the Assessee may rely in support of the computation made by him of the Arm's Length Price. Sub-section (3) of Section 92CA of the Act provides that the Transfer Pricing Officer shall, by an order in writing, determine the Arm's Length Price in relation to an international transaction or a specified domestic transaction in accordance with the provision of Section 92C(3) of the Act and ....
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....rial or information or documents in possession of Respondent No. 1. As the said Show Cause Notice is statutorily required to be issued in terms of Section 92CA(3) read with Section 92C(3) of the Act, the impugned order dated 20th March, 2023, which has been passed without serving the said Show Cause Notice on the Petitioner, is therefore, bad in law and liable be set aside. We accordingly pass the following order:- (a) The impugned order dated 20th March 2023 is set aside. (b) The matter is remanded back to the file of the Transfer Pricing Officer at the stage of issuance of the Show Cause Notice dated 28th February 2023. (c) The Petitioner will file a reply to the said Show Cause Notice within two weeks from the ....