Held that AO has not followed the directions of said Circular without mentioning any reasons for not referring the matter to the TPO. The order is erroneous and prejudicial to the interest of Revenue irrespective of the fact that the transaction might not have resulted into loss to the Revenue for the reason that both the parties were paying tax at similar rate. As regards remaining grounds, the assessee had made submissions to the Principal CIT that the issue was examined by the AO by raising queries to which assessee had responded by several letters. Revision is valid as regard to directions made to the AO to refer the matter to TPO but on other counts the order is not valid. (AY. 2019-20)
Richa & Co. v. JCIT (2023) 37 NYPTTJ 1728 / (2024) 228 TTJ 1010 / 236 DTR 178 (Delhi) (Trib)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Lack of proper enquiry-TPO-Transfer pricing-Instruction No. 3 of 2016, dt. 10th March, 2016-Both parties paying tax at similar rate-Failure to follow the directions of the Circular-Order is erroneous.[S.40A(2)(b)]
Leave a Reply