Failure to make reference to TPO renders TP Adjustments bad in law

PCIT Vs M/s. S.G. Asia Holdings (India) Pvt. Ltd. (Supreme Court)

In view of the guidelines issued by the CBDT in Instruction 3/2003 the Tribunal was right in observing that by not making reference to the TPO, the Assessing Officer had breached the mandatory instructions issued by the CBDT. We do not find the conclusion so arrived at by the Tribunal to be incorrect.

However, the Tribunal ought to have accepted the submission made by the Departmental Representative as quoted in para 16.2 of

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