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TMI Blog2024 (6) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... mestic transaction ( SDT ) is involved. Although role of the TPO is, certainly limited upto the Covered Transactions only. The intention of the legislature is to examination of covered transaction by a specific authority established solely for those transaction, this view further fortify by the fact that, report of the TPO on specific transactions are binding in nature on jurisdictional AO and he can t have any deviation from the same. In that case, once report of TPO is limited upto determination of ALP only, a challenge by the assessee can be there that the report of TPO is meant for determination of ALP only and not beyond. As gone through the order of TPO and observed that no exercise relating to determination of ALP with reference to method adopted by the assessee along with records submitted by him has been carried out. Rather, his questionnaire is there on record which he issued keeping in view the provisions of section 37 of the Act, which certainly not in his domain. The whole order is silent on the working of ALP and rather determined the benchmarking value at Rs. NIL. This is not possible from any angle of accounting or the intention of the statute also. We find force in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the prescribed methods and disregarding the Transactional Net Margin Method ( TNMM') analysis undertaken by the Appellant in its TP Study; 2.4 Holding that the comparable companies selected by the Appellant are not similar by wrongly trying to find similarity between business of comparables and the business of the Appellant while the business of comparables ought to have been compared with the intra- group services received. That the Appellant craves leave to add to and/or to alter, amend, rescind, modify the grounds herein above or produce further documents before or at the time of hearing of this Appeal. Additional Ground:- Ground No. 3: On the facts and in the circumstances of the case and in law, the final assessment order dated 24 January 2022 passed by the Ld. AO under section 143(3) read with section 144C(13) of the Act is barred by limitation and therefore, is void-ab-initio, bad in law and is liable to be quashed. It is humble prayer of the Appellant that the draft assessment order and the final assessment order are bad in law, null and void and liable to be quashed. The Appellant craves leave to add, alter, amend or withdraw all or any of the grounds of appeal and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Ground no. 2 is specific to the facts of the matter, hence the same is being adjudicated in this order. 5. For better understanding of the issue involved in this matter as raised by the assessee in ground no. 2 alongwith sub grounds, we deem it fit to reproduce section 92CA of the Act for ready reference as under:- [Reference to Transfer Pricing Officer. 92CA. (1) Where any person, being the assessee, has entered into an international transaction [or specified domestic transaction] in any previous year, and the Assessing Officer considers it necessary or expedient so to do, he may, with the previous approval of the [Principal Commissioner or] Commissioner, refer the computation of the arm's length price in relation to the said international transaction [or specified domestic transaction] under section 92C to the Transfer Pricing Officer. (2) Where a reference is made under sub-section (1), the Transfer Pricing Officer shall serve a notice on the assessee requiring him to produce or cause to be produced on a date to be specified therein, any evidence on which the assessee may rely in support of the computation made by him of the arm's length price in relation to the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 153B for making the order of assessment or reassessment or recomputation or fresh assessment, as the case may be, expires:] [Provided that in the circumstances referred to in clause (ii) or clause (x) of Explanation 1 to section 153, if the period of limitation available to the Transfer Pricing Officer for making an order is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to have been extended accordingly.] [(4) On receipt of the order under sub-section (3), the Assessing Officer shall proceed to compute the total income of the assessee under sub-section (4) of section 92C in conformity with the arm's length price as so determined by the Transfer Pricing Officer.] (5) With a view to rectifying any mistake apparent from the record, the Transfer Pricing Officer may amend any order passed by him under sub-section (3), and the provisions of section 154 shall, so far as may be, apply accordingly. (6) Where any amendment is made by the Transfer Pricing Officer under sub-section (5), he shall send a copy of his order to the Assessing Officer who shall thereafter proceed to amend the order of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing there from. We have analysed the provisions of section 92CA of the Act and observed that once a matter is falling in the jurisdiction of the TPO {apparently only for determining the arm s length price (ALP) by applying appropriate method}, we do not see any authority vested with the TPO for examining the matter with reference to section 37 of the Act. 7. Once a matter is referred to the TPO by the Assessing Officer ( AO ) to determine the ALP of an international transaction or specified domestic transaction ( SDT ) (hereinafter collectively referred to as covered transactions ) entered into by the taxpayer during the given financial year under review, he would then examine the facts and circumstances surrounding the covered transactions. Transfer Pricing Officer (TPO) is an integral part of the whole assessment proceedings where international transaction or specified domestic transaction ( SDT ) is involved. Although role of the TPO is, certainly limited upto the Covered Transactions only. 8. The intention of the legislature is to examination of covered transaction by a specific authority established solely for those transaction, this view further fortify by the fact that, rep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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