| COURT: | Gujarat High Court |
| CORAM: | B. N. Karia J, M. R. Shah J |
| SECTION(S): | 92, 92C |
| GENRE: | Transfer Pricing |
| CATCH WORDS: | Reference, Transfer Pricing |
| COUNSEL: | R. K. Patel |
| DATE: | November 16, 2016 (Date of pronouncement) |
| DATE: | December 8, 2016 (Date of publication) |
| AY: | - |
| FILE: | Click here to download the file in pdf format |
| CITATION: | |
| Transfer Pricing: As per CBDT's Instruction No.3/2016 dated 10.03.2016, the AO is required to give an opportunity to the assessee to show cause why the reference should not be made to the TPO and thereafter pass a speaking order while making a reference to the TPO. The failure to do so renders the reference void | |
(i) No speaking order has been passed by the Assessing Officer while making a reference to the TPO, which is a requirement as per the Instruction No.3/2016 dated 10th March, 2016, issued by the CBDT. Before making a reference to the TPO, the assessee is required to be given an opportunity to show cause why the reference may not be made to the TPO and thereafter a speaking order is required to be passed by the Assessing Officer while making a reference to the TPO.
(ii) Under the circumstances, on the aforesaid ground alone, the impugned reference made by the Assessing Officer to the TPO deserves to be quashed and set aside and the matter is required to be remanded to the Assessing Officer to pass a speaking order while making a reference to the TPO.
Indorama Synthetics (India) Ltd. v. Additional Commissioner of IncomeTax, [(2016) 71 Taxmann.com 349 (Delhi)] referred
the very principle is relevant to Art 14 paradigm of the constitution of india; without show cause any reference ought to be bad in law is well brought out here by the hon court,
i wonder why Modi govt does not appoint the CJI collegium appointed judges, when the HC judges really very critical thinkers is obvious is proved here be beyond doubt; when so, it is well below the maturity level of the PMO or the govt run by his
cabinet to understand the importance of the CJI collegium, for it proves beyond doubt that the collegium gives high credence to critical think of the future likely colleagues at the very hon SC.
I may go a little further Law minister if wise need to advice the PMO to recommend fast the recommended list of judges by the CJI collegium lest country suffers for want of critical judges at the constitutional courts, for they are the only people who can save the country’s requirements, selflessly .
that selflessness of Ms J Jayalalitha makes her immortal politician found a place in the hearts of the people of india. I don’t find anyone can replace her in whole of Indian politics or the indian political history as she took such bold decisions to subsidize from govt exchequer to meet the subsidies to meet Amma canteens, and other cares meant for the poor people that was taken advantage by a lot of IT employees who told me they also loved her ; so the central govt needs to know what is meant by matured governance, without any malice.
Always it is important to be a great crical thinkers that every country needs, that critical think tank only will just remove very thought of ‘corruption’ is my take.
tks