Case Law Details
Indian Hotels Company Limited Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that as per section 92CA (3A) of the Income Tax Act Transfer Pricing Officer (TPO) is required to pass an order within a period of 60 days prior to the date of completion of assessment as per section 153 of the Income Tax Act. Order passed after the date will be barred by limitation.
Facts- The Assessee is a domestic company engaged in the business of running hotels and resorts. The Assessee filed a ROI for A.Y. 2011-12 on 30.11.2011 declaring a loss of INR 2,79,87,412/- and paid tax u/s. 115JB of the Act at the book profits of INR 1,05,29,82,190/-.
During the assessment proceedings, AO noted that the Assessee had entered into International Transactions with its Associated Enterprises (AEs) and therefore, a reference u/s. 92CA(3) of the Act was made to the Transfer Pricing Officer (TPO) for the determination of Arms Length Price (ALP) of the International Transactions.
TPO, vide order dated 30.01.2015, passed u/s. 92CA(3) of the Act proposed aggregate transfer pricing adjustments of INR 179,61,83,140/- which was incorporated by AO in the Draft Assessment Order, dated 31.03.2015 passed u/s. 143(3) read with Section 144C of the Act.
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