Bangalore ITAT in Texport Overseas P. Ltd. v. DCIT has held that the amendment with respect to restriction in scope of Domestic Transfer Pricing (TP) by Finance Act, 2017 is deemed to be omitted from its inception.
This amendment relates to earlier TP requirement under section 40A(2)(b) of the Income-tax Act, 1961 (‘the Act’). As the amendment did not provide for any ‘saving clause or provision’ to make it clear that action taken or proceeding initiated under that provision or section would continue and would not be left on account of omission.
Accordingly, ITAT held that the cognizance taken by AO under section 92BA(i) of the Act and reference made to Transfer Pricing Officer (TPO) under section 92CA is invalid and bad in law. Therefore, consequential order passed by TPO & Dispute Resolution Panel (DRP) is also not sustainable in the eyes of law.
 Bangalore ITAT Judgment in IT(TP)A No.1722/Bang/2017
To know more