October 2022
International transactions — Reference to TPO — (A) Limitation — Reference made to TPO beyond period of limitation — All further proceedings in furtherance of reference bad in law (B) Jurisdiction — Reference made to TPO beyond period of limitation — Participation of assessee in proceedings not a bar to challenging jurisdiction (C) Writ — Maintainability — Reference to TPO — Limitation — Question of limitation is legal plea and can be raised at any stage — Existence of alternate remedy not bar — Writ will issue
By K. B. Bhujle, Advocate
43 Virtusa Consulting Services Pvt. Ltd. vs. DRP
[2022] 446 ITR 454 (Mad.)
A.Y.: 2006-07
Date of order: 9th June, 2022
Ss. 92CA, 92CA(1) and 153(1) of ITA, 1961
International transactions — Reference to TPO — (A) Limitation — Reference made to TPO beyond period of limitation — All further proceedings in furtherance of reference bad in law (B) Jurisdiction — Reference made to TPO beyond period of limitation — Participation of assessee in proceedings not a bar to challenging jurisdiction (C) Writ — Maintainability — Reference to TPO — Limitation — Question of limitation is legal plea and can be raised at any stage — Existence of alternate remedy not bar — Writ will issueThe assessee was in the business of software development and rendered services to its wholly owned subsidiaries outside India and unrelated third party customers. For the A.Y. 2006-07, the Assessing Officer passed an assessment order dated 14th March, 2008 and refund was granted on 28th March, 2008. Subsequently, pursuant to proceedings of the Commissioner dated 25th August, 2008, the Additional Commissioner issued a notice dated 4th September, 2008 u/s 143(2) of the Income-tax Act, 1961 against the assessee. The assessee furnished its books of account, including forms 3CA and 3CD in terms of section 44AB. It was found that the assessee had entered into international transactions exceeding Rs. 15 crores with its sister concern and on
