The Appellate Tribunal held that the AO having not asked the assessee for the working of the allocation, drawing an adverse inference without giving the assessee a chance to explain is in gross violation of principals of natural justice. Hon’ble Appellate Tribunal restored the matter back to TPO to decide the issue afresh after giving the assessee proper and reasonable opportunity of being heard. (AY. 2014-15)
Dassault Systems India P. Ltd. v. Add. CIT (2023) 105 ITR 9 (SN) (Delhi) (Trib)
S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-AO drawing an adverse inference without providing an opportunity to explain the working of allocation is in violation of principals of natural justice. [S. 144C]