Revisionary order violating CBDT instruction no. 3/2016 is unsustainable

Zydus Healthcare Limited Vs PCIT (ITAT Kolkata)

ITAT Kolkata held that CBDT instruction no. 3/2016 exempt referring the specified domestic transactions with AE to TPO. Thus, revisionary order directing AO to pass fresh assessment order after making reference to TPO is unsustainable.

Facts-

On scrutiny of the assessment record, Commissioner formed an opinion that the assessee had entered into specified domestic transactions with its Associated Enterprises, namely Cadilla Healthcare Limited. He referred to such a transaction and observed that the Assessing Officer should have referred to the TPO as per CBDT Instruction No. 3/2016.

The grievance of the assessee is that the ld. CIT has erred in taking cognizance under section 263 of the Income Tax Act and setting aside the assessment order dated 19.12.2018 passed under section 143(3) of the Income Tax Act. The ld. CIT further erred in directing the ld. Assessing Officer to pass a fresh assessment order after making a reference to the ld. TPO under section 92C of the Income Tax Act.

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