TPO cannot suo-motu assume jurisdiction to determine ALP price of SDT not referred to him

Times Global Broadcasting Company Ltd vs. Union of India & Ors. (Bombay High Court)

Whether the Transfer Pricing Officer can examine any specified domestic transaction, even if the same is not specifically referred to him by the Assessing Officer?

Hon’ble Bombay High Court (HC) held that the transfer pricing officer (TPO) cannot suo-motu assume jurisdiction to determine the arm’s length price (ALP) of specified domestic transactions (SDT) not referred to him.

Facts of the case:

– Times Global Broadcasting Company Ltd (the petitioner), is a wholly owned subsidiary of Benett, Coleman and Company Ltd (BCCL) and is engaged in the business of distribution of television channels for the Times Group entities. It also provides support services to the Times Group entities in the area of finance, legal, human resources, commercial, administration and technical and broadcasting.

Please become a Premium member. If you are already a Premium member, login here to access the full content.