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TMI Blog2016 (2) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... come or loss return. The Transfer Pricing Officer has accepted the return filed by the petitioner. In view of the which, neither of the two conditions are satisfied in the case of the petitioner and thus the petitioner for the purposes of Section 144C(15)(b) is not an “eligible assessee”. Since the petitioner is not an eligible assessee in terms of Section 144C(15)(b), no draft order can be passed in the case of the petitioner under Section 144C(1). As the petitioner, not being an “eligible assessee” in terms of Section 144C(15)(b) of the Act, the Assessing Officer was not competent to pass the draft assessment order under Section 144C (1) of the Act. The draft assessment order dated 31.03.2015 is accordingly quashed. - Decided in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise. Thirdly, it is contended that in terms of Section 153(1) third proviso, the assessment could be completed by 31.03.2015 and since only a draft assessment order was passed, which suffers from jurisdictional defect, the assessment proceedings have now become time barred. 3. The petitioner is a Company incorporated in India and is engaged in the business of manufacture and sale of passenger cars. The petitioner is a subsidiary company of Honda Motors Company Limited, Japan ( Honda Japan for short). The petitioner purchases raw material, spare parts, capital goods etc. from Honda Japan and cars are manufactured in India under the technical collaboration agreements. The petitioner pays royalty to Honda Japan. On 29.11.2011, return of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention of the petitioner that the Assessing Officer was required to give effect to the Circular issued by the CBDT while making disallowance under Section 40(a)(i) of the Act, the respondents in their counter-affidavit have contended that in terms of the Circular No.3/2015 dated 12.02.2015 issued by the CBDT disallowance under Section 40(a)(i) should be made only in the appropriate proportion of the sum chargeable to tax as per Section 195(1) of the Act and as the said Circular of CBDT is binding on the Assessing Officer, the benefit of the Circular would be given to the assessee. In view of the categorical stand taken by the respondent, conceding to the contention of the petitioner, we need not dwell further into this issue. 7. With ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble assessee to mean (i) any person in whose case the variation referred to in sub-section (1) arises as a consequence of the order of the Transfer Pricing Officer passed under section 92CA(3); and (ii) any foreign company. 10. The Supreme Court in P.Kasilingam Others v. P.S.G.College of Technology Ors. : 1995 Suppl 2 SCC 348 has held that the use of word means indicates that the definition is a hard and fast definition and no other meaning can be assigned to the expression than is put down in the definition. 11. In Section 144C (15)(b) of the Act, the term eligible assessee is followed by an expression means only and there are two categories referred therein (i) any person in whose case the variation arises as a consequenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quence of order of Transfer Pricing Officer passed under sub-section (3) of section 92CA. We have been taken through the order passed by the Assistant Commissioner of Income-tax dated 29-9-2010, wherein it is held as under: 3. The assessee is engaged in the business of manufacture of Aluminium Profiles. The details of International transactions in terms of section 92B of the Act between the assessee and its Associate Enterprise are given in Form 3CE8. Relevant details regarding international transactions were produced by the assessee and are kept on record. After discussion and based on records produced, no adjustment is being made to the arm s length price of the transactions. (Emphasis supplied) 8. From the above, it is clear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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