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TMI BlogClarification on reference to the TPO u/s 92CA(1) of the IT Act 1961 in search casesX X X X Extracts X X X X X X X X Extracts X X X X ..... 53C of the income Tax Act, 1961, the Assessing Officers of the Central Charge usually come across cases where international transactions of the value exceeding Rs. 15 crores are involved. As per the extant instructions of the CBDT, in such cases reference to the Transfer Pricing Officer (TPO) has to be mandatorily made by the Assessing Officer,. It is noticed that for some of the assessment years covered in the proceedings u/s 153A/153C, reference to the TPO had been made earlier during the course of assessment proceedings u/s 143(3) /147 prior to the date of search. In this regard, the following two types of cases are noticed. i) In the earlier reference made to the TPO, no transfer pricing adjustment was suggested by the TPO in the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to whether following the search, a fresh reference to TPO is mandatory in the assessment of an assessee for a particular Assessment Year u/s 153A/153C, involving transfer pricing issues where the assessment for that very year, involving the same transfer pricing issue, was completed prior to the search, after duly considering the report of the TPO, where no further facts relevant for transfer pricing have come to the notice of the AO subsequent to the search? Thus the context of the reference and the guidelines referred above appear to be different. 3. The matter has been examined in the Board and the requisite clarification is conveyed as follows: 3.1 Section 92CA(1) which deals with the subject matter of reference to TPO says "Where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a case where a notice u/s 153A or 153C is issued and any assessment or reassessment is pending, it shall abate. Accordingly, in a case where AO has made a reference to the TPO and the TPO has not given his report or given the report but AO has not completed the assessment on the date of initiation of search u/s 132 or making of requisition under section 132A, such assessment shall abate. In such a case, during the course of proceedings u/s 153A/153C, the Assessing Officer will be required to make a reference to the TPO in accordance with the provisions of section 92CA. However, in a case where the AO has passed the assessment order on the relevant date taking into account the report of the TPO, such assessment order having been completed o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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