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2016 (5) TMI 1374 - HC - Income TaxTransfer Pricing adjustment - Held that - In view of the fact that the ITAT had declined to adjudicate the Transfer Pricing issue because no addition has been made by the AO and considering that the AO passed a rectification order making an adjustment on the Transfer Pricing issue, the Court sets aside the impugned order of the ITAT 2015 (12) TMI 515 - ITAT DELHI and remands the appeal to the ITAT for a fresh adjudication on the Transfer Pricing adjustment issue in accordance with law.
Issues:
Transfer pricing adjustment issue not adjudicated by ITAT due to no addition made in total income of Assessee. Analysis: The judgment pertains to an appeal under Section 260A of the Income Tax Act, 1961 against an order passed by the Income Tax Appellate Tribunal (ITAT) for the Assessment Year 2011-12. The key issue in this case was the Transfer Pricing adjustment, which was not addressed by the ITAT in the impugned order as no addition had been made in the computation of the Assessee's total income. However, it was noted that the Assessing Officer had initiated rectification proceedings regarding the Transfer Pricing issue. Subsequently, before the ITAT's order, the AO passed a rectification order making the Transfer Pricing Adjustment for income computation purposes. The appellant prayed for setting aside the ITAT's order and remanding the matter for the Transfer Pricing adjustment issue's fresh adjudication. The Court, considering the circumstances where the ITAT declined to adjudicate the Transfer Pricing issue due to no addition by the AO, and the subsequent rectification order by the AO, decided to set aside the ITAT's order dated 2nd December 2015 and remand the appeal to the ITAT for a fresh decision on the Transfer Pricing adjustment issue in accordance with the law. The judgment directed the appeal to be listed before the ITAT on 1st June 2016, with a request for the ITAT to dispose of the appeal within three months thereafter. The present appeal was disposed of accordingly, canceling the previously fixed date and ordering dasti.
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