9911796707
TMI Blog2024 (5) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... 4C of the Income-tax Act, 1961 (hereinafter referred to as the "the Act" in short), relating to the Assessment Year (AY) 2015-16. 2. The brief facts of the case are that the assessee is a private limited company, engaged in the business 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of section 92BA of the Act and thus the decision is not going to be setting any precedence. Respectfully following the above given findings of the Tribunals and the Honourable High Courts, these transactions are undisputedly carried out by 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 Transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case Section 92BA(i) would be applicable, particularly when the said section was omitted from the statute by the Finance Act, 2017 w.e.f. 01.04.2017. In fact, it is to be considered as to whether Clause (i) of Section 92BA of the Act, which has been omitted 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 It is a settled principle of law that when a particular provision is repealed from the statue, the normal effect would be to obliterate it from the statute book as completely as if it had never been passed and the statute must be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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contention raised by revenue with regard to retrospectivity of Section 92BA(i) of the Act. Thus, when clause (i) of Section 92BA having been omitted by the Finance Act, 2017, with effect from 01.07.2017 from the Statute the resultant effect is that it had never been 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
