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TMI Blog2024 (5) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... articular provision in a statute is unconditionally omitted and in its place another provision dealing with the same contingency is introduced without a saving clause in favour of pending proceedings, then it can be reasonably inferred that the intention of the legislature is that the pending proceeding shall not continue, but fresh proceedings for the same purpose may be initiated under the new provision. If that be so, then since the Clause (i) of Section 92BA was omitted by Finance Act, 2017 w.e.f. 01.04.2017 from the statute, the same cannot be made applicable in the pending proceeding. It is, therefore, to be considered non-est in the concerned statute as if it had never been passed. Thus once the said clause being omitted w.e.f. 01.04 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of manufacturing of bulk drugs and formulations. The assessee filed its return of income on 12.09.2016 declaring total income of Rs. 28,55,340/-. The assessee had entered into specified domestic transactions of Rs. 16,34,41,898/-. Therefore, the case was referred to Transfer Pricing Officer (TPO) for computing the Arm s Length Price (ALP) in respect of the specified domestic transactions entered into by the assessee. The TPO passed order u/s 92CA(3) of the Act on 26.10.2018 whereby upward adjustment of Rs. 3,45,39,464/- was made. The Assessing Officer, while completing the assessment, upheld the upward adjustment determined by the TPO and demanded tax thereon. 3. Aggrieved against the same, the assessee filed an appeal before the CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Appellant are at arms-length price, therefore, the additions made by the assessing officer in relation to upward adjustment for Rs. 3,45,39,464/- are required to be deleted. The ground no 1 to 5 are allowed. The A.O. is directed accordingly and issue revised demand notice. 4. Aggrieved against the same, the Revenue is in appeal before us raising the solitary ground that the CIT(A) erred in deleting the upward adjustment of Rs. 3,45,39,464/- in respect of Specified Domestic Transactions . 5. Ld. Sr. Counsel Shri S. N. Soparkar, appearing for the assessee, submitted before us that this issue is no more res integra following the judgment passed by the Hon ble Karnataka High Court in the case of PCIT Vs. Texport Overseas (P.) Ltd., report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w.e.f. 01.04.2017, would be applicable retrospectively. It is a settled principle of law that when a particular provision is repealed from the statue, the normal effect would be to obliterate it from the statute book as completely as if it had never been passed and the statute must be considered as a law that never existed. Further that in a case where a particular provision in a statute is unconditionally omitted and in its place another provision dealing with the same contingency is introduced without a saving clause in favour of pending proceedings, then it can be reasonably inferred that the intention of the legislature is that the pending proceeding shall not continue, but fresh proceedings for the same purpose may be initiated under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en passed and to be considered as a law never been existed. Hence, decision taken by the Assessing Officer under the effect of Section 92BI and reference made to the order of Transfer Pricing Officer TCP under Section 92CA could be invalid and bad in law. 9. Thus, relying upon the ratio laid down upon the Hon ble Karnataka High Court and different benches of the Tribunal, we find no justification in the order passed by the TPO/AO making upward adjustment invoking Section 92BA(i) of the Act, in the present facts and circumstances of the case, particularly when the said section stood omitted w.e.f. 01.04.2017 from the statute itself. Hence, we find that the order passed by the TPO/AO is without any basis, void ab initio and without jurisdicti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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