CASE LAWS

INDORAMA SYNTHETICS INDIA LTD Vs ADDL CIT: DELHI HIGH COURT (Date: July 25, 2016)

Income tax - Sections 92A, 92CA, 92E & 143(2)

Keywords - ALP - AE - brought forward losses - international transaction - non filing of Form 3CEB - opportunity of hearing reference to TPO & recording of satisfaction

Whether it is incumbent on the AO to provide the assessee an opportunity of being heard before making a reference to the TPO u/s 92CA(1), and deal with objections if any, of the assessee - YES: HC

Whether the satisfaction to be arrived at by the AO regarding the existence of the international transaction or specified domestic transaction, is a sine qua non for making the reference of such transaction to the TPO - YES: HC

Whether it is open to the AO to proceed with determination of ALP u/s 92C(3) by referring the matter to the TPO u/s 92CA(1), without providing any opportunity of hearing to the taxpayer or recording his own satisfaction, in case the assessee has not filed Form 3CEB/Accountant's report u/s 92E - NO: HC

Case remanded

TII Circular/Notification

Circular/Notification No : F.No.A-120206/18/2016-Ad.I

AAR looking for Member (Law) for addl bench in Mumbai