JNS Instruments Ltd. v. Pr. CIT

SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2021 TaxPub(DT) 5762 (Del-Trib)

INCOME TAX ACT, 1961

Section 263

Though AO was aware of the reference made to TPO, however, AO did not deem it necessary to wait for TPO's report while passing Assessment Order. Even the assessment order was very cryptic, in as much as it did not even mention as to what issues were before AO . In such circumstances, the order passed by Pr. CIT revising the assessment passed under section 143(3) read with section 153A was completely in order.

Revision under section 263 - Erroneous and prejudicial order - AO being aware of the reference made to TPO did not deem it necessary to wait for TPO's Report while passing Assessment Order -

Assessee earlier filed its return on 26-11-2011 showing total income at Rs. NIL. During the course of assessment proceedings, AO made reference to (TPO) under section 92CA vide letter dated 26-7-2013 to determine Arm's Length Price (ALP) of assessee's international transactions with its Associated Enterprises. Search and seizure operation was conducted while the assessment was pending. Assessment was completed under section 143(3) read with section 153A of the Act vide order dated 30-3-2016 accepting the returned income at Rs. NIL. Pr. CIT treated order passed by AO as erroneous and prejudicial to the interest of revenue on the ground that assessment was completed hurriedly and without waiting for the report of TPO which was subsequently received by the AO vide order dated 28-10-2016 wherein an adjustment of Rs. 23.23 crores was proposed by him on account of adjustment to ALP of the international transaction. Assessee contended that AO was aware if the reference so made. Held: Though AO was aware of the reference made to TPO, however, AO did not deem it necessary to wait for TPO's report while passing Assessment Order. Even the assessment order was very cryptic, in as much as it did not even mention as to what issues were before AO. In such circumstances, the order passed by Pr. CIT revising the assessment passed under section 143(3) read with section 153A was completely in order.

Relied:Gee Vee Enterprises (1975) 99 ITR 375 (Del-HC) : 1975 TaxPub(DT) 267 (Del-HC), Rampyari Devi Sarogi v. CIT (1968) 67 ITR 84 (SC) : 1968 TaxPub(DT) 135 (SC) and Tara Devi Aggarwal v. CIT (1973) 88 ITR 323 (SC) : 1973 TaxPub(DT) 389 (SC), CIT v. Nagesh Knitwears (ITA 591/2008, dt. 1-6-2012) : 2012 TaxPub(DT) 2040 (Del-HC) and ITO v. DG Housing Projects Ltd. (2012) 343 ITR 329 (Del-HC) : 2012 TaxPub(DT) 1727 (Del-HC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

IN THE ITAT, DELHI BENCH