AO Can Refer case To TPO Only After Selecting Case For Scrutiny Assessment: Bombay HC

PCIT Vs Kimberly Clark Lever Private Limited (Bombay High Court) Introduction: In a significant ruling, the Bombay High Court dismissed the appeal in the case of PCIT vs Kimberly Clark Lever Private Limited. The Court confirmed that an Assessing Officer (AO) can make a reference to the Transfer Pricing Officer (TPO) only after selecting the case for scrutiny assessment. This decision has substantial implications for cases dealing with international transactions and transfer pricing assessments. Analysis: The Court held that the Assessing Officer was precluded from making a reference to the TPO...