Case Law Details
Hyundai Motor India Ltd. Vs Secretary, Income Tax Department (Madras High Court)
This Writ Appeal is directed against the order of the learned Single Judge dated 20.10.2017, dismissing the Writ Petition of the Appellant herein M/s.Hyndai Motors India Ltd., as premature, which was directed against the order of the Dispute Resolution Panel (“DRP”, for short) dated 13 December 2016, for the Assessment Year 2012-13.
The learned Single Judge has dismissed the Writ Petition as premature finding that against the order of the learned TPO when passed in consequence of the directions given by the DRP, there is an appeal remedy available to the Assessee before the learned Tribunal and therefore, the questions of facts coupled with the questions of law sought to be raised before the DRP and before this court under the Writ Jurisdiction, can be first agitated before the learned Tribunal as well. Thereafter, the Assessee has further remedy by way of appeal to this court on the substantial questions of law arising from the order of the Tribunal under section 260A of the Income Tax Act.
Held by High Court Two Judge Bench
This stream lined procedure, provided under the Act should not normally be allowed to be breached in such cases where a deeper analysis of facts has to be done by the authorities under the Act up to the Tribunal and a factual exercise has to be undertaken by them with regard to comparables, TP Adjustments and methods for making TP adjustments as prescribed in Rule 10B and Section 92C of the Act. Prematurely pronouncing on these issues, definitely curtails the discretion of the Assessing Authorities in this regard and as we have said above, it is a self defeating exercise, which the High Court in its Writ Jurisdiction should be reluctant to undertake.
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