Price Waterhouse & Anr v. Commissioner Of Income Tax, Kolkata-8 & Anr

31.01.2023 ss W.P.A. 16340 of 2015 Price Waterhouse & anr. Vs. Commissioner of Income Tax, Kolkata-8 & anr. Mr. J. P. KhaitanMr. Akhilesh Kr. GuptaMr. Asim ChoudhuryMr. Soham Sen… for the petitioners Mr. S. Roychowdhury … for the respondents Heard learned Counsel for the parties. This application under Article 226 of theConstitution of India has been filed questioning thepropriety of the Assessing Officer referring a matter forcomputation of the arm's length price to the TransferPricing Officer (TPO) without giving any opportunity to theassessee. Mr. J. P. Khaitan, learned Senior Advocateappearing on behalf of the petitioners has relied on theassessee’s own case in Pricewater House and anotherVs. Commissioner of Income Tax, Kolkata-XIX (APO36 of 2017 arising out of WP 733 of 2014) to buttresshis argument. In light of the same, the Assessing Officer isdirected to afford an opportunity of being heard with regard to the issue as to whether there is internationaltransaction for the Assessment Year concerned. Upon considering the assessee’s objection, if any, insuch regard, if the Assessing Officer is of the opinion thatthere was indeed an international transaction or aspecified domestic transaction within the meaning of therelevant expressions in Chapter-X of the Act in course ofthe relevant assessment year, the Assessing Officer mayrefer the matter to the appropriate TPO upon obtainingthe previous consent of the Commissioner or PrincipalCommissioner. It is recorded that the writ petitioners have fairlysubmitted that the ground of limitation will not be urgedby the writ petitioner while the Assessing Officer embarkson the exercise of ascertaining the facts in accordancewith the directions contained in the order impugned. In such circumstances, the order of reference underSection 92CA(1) of the Income Tax Act, 1961 made by therespondent no.3 to the respondent no.5 for theAssessment Year 2012-13 as also the approval of therespondent no.1 in that regard are set aside. Thepetitioners will be provided with the reasons on the basisof which reference under Section 92CA(1) of the IncomeTax Act, 1961 is proposed for the Assessment Year 2012-13 in oral representations and the respondent nos.1 and3 will thereafter decide the matter in accordance with law. With the above observations, this writ petitionbeing W.P.A. 16340 of 2015 is disposed of. All parties are to act on website copy of this order. < (Shekhar B. Saraf, J.)