Assessee’s Contentions

Revenue’s Contentions

Court’s Judgement

The assessee challenged the 341-day delay condoned by the High Court in filing the Revenue’s appeal against the ITAT order for AY 2008-09. It also challenged the admission of the appeal concerning the validity of TP adjustments in Section 153A proceedings.

The Revenue’s appeal raised questions regarding whether the TP adjustments could be deleted merely because no fresh reference was made to the TPO during Section 153A proceedings, despite an earlier valid TPO reference and determination.

The Supreme Court, after hearing the assessee and examining the material on record, held that it found no good ground to interfere with the High Court’s order and accordingly dismissed the SLP.

The assessee further challenged the questions framed by the High Court concerning whether abatement under the second proviso to Section 153A(1) made the earlier TPO determination non-est/void, and whether the ITAT could entertain additional technical grounds regarding the validity of the TPO reference.

The Revenue’s appeal before the High Court raised whether the ITAT was justified in deleting the TP adjustments merely because a fresh TPO reference was not made under Section 153A, despite an earlier valid reference and determination in the abated proceedings. The High Court admitted these substantial questions for consideration.

The Supreme Court did not adjudicate these substantive TP or Section 153A questions on merits. Its order was limited to declining interference with the High Court’s order; the SLP was dismissed and pending applications were disposed of.