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2019 (12) TMI 205 - AT - Income TaxRevision u/s 263 - setting aside the order passed u/s 143(3) - A.O. failed to refer the specified domestic transactions to the TPO - HELD THAT - Issue is squarely covered by the decision of this Tribunal rendered in the case of Swastik Coal Corporation Pvt. Ltd. Vs. Pr. CIT 2019 (7) TMI 1486 - ITAT INDORE the order has been revised purely on the basis that the assessing officer has not referred to determine the arm s length price to the TPO. Since the provision itself stood omitted at the time when the order was passed by the Pr. CIT, under these undisputed facts in the light of the Judgement in the case of General Finance Company 2002 (9) TMI 3 - SUPREME COURT as well as the order of the coordinate bench rendered in the case of Texport Overseas Pvt. Ltd. 2017 (12) TMI 1719 - ITAT BANGALORE the impugned order cannot be sustained, hence is hereby quashed. The order impugned is thus quashed and the grounds raised in the appeal are allowed.
Issues:
1. Setting aside of the assessment order under section 263 of the Income Tax Act, 1961 for not examining specified domestic transactions. Analysis: The appeal was filed against the order of the Ld. Pr. CIT-1, Indore, pertaining to the assessment year 2014-15. The Ld. CIT set aside the assessment order passed under section 143(3) of the Income Tax Act, invoking section 263, due to the A.O.'s failure to examine large specified domestic transactions. The appellant contended that the order under section 263 was erroneous and prejudicial to the revenue's interest. The only effective ground in the appeal was against setting aside the assessment order under section 143(3) by invoking section 263. The A.O. had accepted the return declared by the assessee during the scrutiny assessment, but the Ld. Pr. CIT issued a notice under section 263, questioning the A.O.'s failure to consider loss from currency fluctuations and not referring the matter to the TPO for computing specified domestic transactions' value. The Ld. CIT set aside the assessment order and directed a fresh assessment. The issue revolved around the A.O.'s failure to refer specified domestic transactions to the TPO. The Tribunal referred to a previous decision and held that the assessment order was not prejudicial to the revenue's interest, thereby allowing the appeal filed by the assessee. The Tribunal considered the submissions, evidence, and orders of the authorities below. The specific issue for the revision of the order was the A.O.'s alleged failure to refer specified domestic transactions to the TPO. The Tribunal noted that a similar issue had been addressed in a prior case, where it was decided that the assessment order was not prejudicial to the revenue's interest. Following a consistent view, the Tribunal set aside the Ld. Pr. CIT's order, concluding that the assessment order was not detrimental to the revenue's interest. As a result, the appeal filed by the assessee was allowed, and the order was pronounced in open court on 21.11.2019.
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