Allowing the petition the Court held, that a bare perusal of the Transfer Pricing Officer order dated January 31, 2021 would suggest that the Transfer Pricing Officer had never determined the arm\u2019s length price of the international transaction relating to the demerger of business and rather only determined an adjustment. Though the Transfer Pricing Officer\u2019s order, inter alia, reflected some discussion regarding the value of the demerger of the business, it nowhere held\u00a0 depicted the arm\u2019s length price of such an international transaction.\u00a0 The Assessing Officer, without affording an opportunity of hearing to the assessee, proceeded to add\u00a0 to the total income of the assessee, which addition was neither determined nor directed by the Transfer Pricing Officer, as the arm\u2019s length price of the international transaction related to the demerger of the business. The course of action was not available to the Assessing Officer and it was a clear case of excess. The order is not valid. Referred, PCIT v. S.G. Asia Holdings (India) Pvt Ltd\u00a0 (2019) 14 ITR-OL 256 (SC) \u00a0(AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92CA : Transfer pricing Reference to Transfer Pricing Officer-Arm\u2019s Length price-Avoidance of tax-Assessing Officer cannot make Transfer pricing adjustment which is not considered by Transfer Pricing Officer. [S.92C, 144C, Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","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":""},"categories":[21],"tags":[],"class_list":["post-48560","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cDe","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=48560"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48560\/revisions"}],"predecessor-version":[{"id":48561,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48560\/revisions\/48561"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=48560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=48560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=48560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}