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| The Tax Publishers2020 TaxPub(DT) 2528 (Del-Trib) INCOME TAX ACT, 1961
Section 92CA
Where TPO did not consider issue regarding computation of ALP of corporate guarantee issued by assessee, AO could not himself determine same without referring same to TPO.
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Transfer pricing - Computation of ALP - AO, whether empowered to decide issue as regards consideration of corporate guarantee himself without referring to TPO -
Corporate guarantee issued by assessee company in favour of its subsidiary. TPO informed AO that issue regarding computation of ALP of corporate guarantee issued by assessee was not considered by him while finalizing transfer pricing orders. AO proceeded to examine issue of ALP of corporate Guarantee and applied CUP method and determined ALP of guarantee charges. Held: CIT(A) was not justified in holding that AO could himself determine ALP of corporate guarantee under section 92C(3) without making reference to TPO. By not making reference to TPO, AO breached mandatory instructions issued by CBDT.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2008-09
INCOME TAX ACT, 1961
Section 9 Section 40(a)(ia)
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