The Tax Publishers2020 TaxPub(DT) 2710 (Mum-Trib) : (2020) 206 TTJ 0405

INCOME TAX ACT, 1961

Section 263 Section 92(4), Proviso

Proviso to section 92C(4) was though applicable in case where ALP was determined by AO but the same could not be extended to determination of same by assessee. Accordingly, CIT grossly erred in asuming jurisdiction under section 263, for dislodging view taken by AO as regardes entitlement of assessee towards deductions under sections 10A and 10B allowed by AO as regards suo moto transfer pricing adjustment made by assessee.

Revision under section 263 - Erroneous and prejudicial order - Invocation of jurisdiction - On the ground of AO having allowed deduction under section 10A and section 10B as regards suo moto transfer pricing adjustment made by assessee

CIT in view of proviso tos ection 92C(4) held assessment order as erroneous and prejudicial to the interest of revenue on the ground of AO having allowed deduction under section 10A and section 10B as regards suo moto transfer pricing adjustment made by assessee. Held: Proviso to section 92C(4) was though applicable in case where ALP was determined by AO but the same could not be extended to determination of same by assessee. Accordingly, CIT grossly erred in asuming jurisdiction under section 263, for dislodging view taken by AO as regardes entitlement of assessee towards deductions under sections 10A and 10B as regards suo moto TP adjustment made by assessee.

Followed:CIT v. I-Gate Global Solutions Ltd. [ITA No. 452/2008], dated 17-6-2014], ITAT, Hyderabad 'B' Bench in Sumtotal Systems India (P) Ltd. v. DCIT (2017) 186 TTJ 14 (Hyd) : [(ITA No. 255/Hyd/20015), dated 23-9-2016] : 2016 TaxPub(DT) 4688 (Hyd-Trib) and ITAT, Bangalore in the case of Austin Medical Solutions (P) Ltd. v. ITO (IT(TP) A. No. 542/Bang/2012), dated 17-7-2016, Approva Systems (P) Ltd. v. DCIT (ITA No. 1051/Pun/2015, dated 12-3-2018) : 2018 TaxPub(DT) 1449 (Pune-Trib)/.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

IN THE ITAT, MUMBAI BENCH

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