Section 92CA, read with section 263, of the Income-tax Act, 1961 - Transfer pricing

IT: When no return is pending for consideration by AO, reference by him to TPO will be bad; if TPO finds no fault with ALP determined by AO, revision was unjustified
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[2014] 51 taxmann.com 296 (Karnataka)
HIGH COURT OF KARNATAKA
Commissioner of Income-tax, Bangalore
v.
SAP Labs (P.) Ltd.*
N. KUMAR AND MRS. RATHNAKALA, JJ.
IT APPEAL NOS. 842 OF 2008 & 339 OF 2010†
AUGUST  25, 2014
Section 92CA, read with section 263, of the Income-tax Act, 1961 - Transfer pricing - Reference to TPO (Revision) - Assessment year 2002-03 - Whether where on day reference was made by Assessing Authority to Transfer Pricing Authority, there is no return pending for consideration by Assessing Authority, reference made to Transfer Pricing Authority (TPA) was bad - Held, yes - Whether otherwise, where TPA did not find fault with adjudication of determining arms length price by Assessing Authority, Commissioner committed an error in exercising power under section 263 - Held, yes [Para 4] [In favour of assessee]