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December 2016

20. Assessment – Transfer pricing – DRP is superior to AO- AO is bound by decision of DRP – ESPN Star Sports Mauritius

By K. B. BHUJLE, Advocate
Reading Time 1 mins

S. N.
C. ET Compagnie vs. UOI; 388 ITR 383 (Delhi):

In this
case, the DRP declared that the Assessing Officer lacked jurisdiction to deal
with an issue. However, the Assessing Officer passed a final assessment order
ignoring the order of the DRP.  

The Delhi
High Court allowed the writ petition filed by the assessee and held as under:

“i)  The
language used by the Assessing Officer while disagreeing with the binding order
of the DRP was wholly unacceptable.

ii)  The
draft assessment order dated 28/03/2014 and the final assessment order dated
28/01/2015, passed by the Assessing Officer were void ab initio and
liable to be quashed on that basis.”

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