{"id":2780,"date":"2011-03-02T21:20:48","date_gmt":"2011-03-02T15:50:48","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=2780"},"modified":"2011-03-02T21:20:48","modified_gmt":"2011-03-02T15:50:48","slug":"pankaj-extrusion-ltd-vs-acit-gujarat-high-court-s-144c-order-cannot-be-passed-if-no-transfer-pricing-adjustments-made-by-tpo","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/pankaj-extrusion-ltd-vs-acit-gujarat-high-court-s-144c-order-cannot-be-passed-if-no-transfer-pricing-adjustments-made-by-tpo\/","title":{"rendered":"Pankaj Extrusion Ltd vs. ACIT (Gujarat High Court)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=366\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=366&varname2=pankaj_extrusion_DRP_TP_void.pdf'; }, 100)\" ><strong>Click here to download the judgement (pankaj_extrusion_DRP_TP_void.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nS. 144C order cannot be passed if no transfer pricing adjustments made by TPO<br \/>\n<\/strong><\/p>\n<p>The TPO passed an order u\/s 92CA (3) stating that the transactions with affiliated enterprises were at arms&#8217; length and no transfer pricing adjustments were to be made. Pursuant to that the AO passed a draft assessment order u\/s 144C. The assessee filed a Writ Petition to challenge the draft assessment order. HELD upholding the challenge: <\/p>\n<blockquote><p>U\/s 144C(1) the AO has to pass a draft assessment order in the case of an \u201celigible assessee\u201d which is defined in s. 144C(15)(i) to mean any person in whose case the variation from returned income arises as a consequence of the order of the TPO u\/s 92CA(3). <strong>As no transfer pricing adjustments had been made by the TPO, the assessee was not an \u201celigible assessee\u201d and the AO had no jurisdiction to pass the draft assessment order<\/strong>.<\/p><\/blockquote>\n<div class=\"journal2\">\n<strong>Note<\/strong>: In <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/ericsson-ab-vs-adit-delhi-high-court-s-144c-drp-must-act-to-expectations-not-have-perfunctory-approach\/\">Ericsson AB vs. ADIT<\/a><\/strong> the assessee, being a foreign company, would have continued to be an &#8220;eligible assessee&#8221; even though the TPO had not made any adjustments\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>U\/s 144C(1) the AO has to pass a draft assessment order in the case of an \u201celigible assessee\u201d which is defined in s. 144C(15)(i) to mean any person in whose case the variation from returned income arises as a consequence of the order of the TPO u\/s 92CA(3). As no transfer pricing adjustments had been made by te TPO, the assessee was not an \u201celigible assessee\u201d and the AO had no jurisdiction to pass the draft assessment order<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/pankaj-extrusion-ltd-vs-acit-gujarat-high-court-s-144c-order-cannot-be-passed-if-no-transfer-pricing-adjustments-made-by-tpo\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,5],"tags":[],"class_list":["post-2780","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-high-court"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/2780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=2780"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/2780\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=2780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=2780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=2780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}