SHRI SURESHKUMAR HARJIVANBHAI CHANDARANA,RAJKOT vs. THE ACIT, CIRCLE - 2 (2) (1), RAJKOT, RAJKOT

ITA 415/RJT/2023Status: HeardITAT Rajkot15 December 2025AY 2016-17Bench: DR. ARJUN LAL SAINI (Accountant Member), SHRI DINESH MOHAN SINHA (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the addition made by the TPO/AO was unsustainable in law because the relevant provision under which the TPO's order was passed had been omitted from the statute with effect from April 1, 2017, and the assessment order was passed after this date. The Tribunal also noted that the assessee had adopted the CUP method, and no transfer pricing adjustment was required.

What were the facts?

The assessee, a proprietor involved in agri-product trading, purchased goods from a related enterprise (AE). The Transfer Pricing Officer (TPO) made an upward adjustment of Rs. 3,98,32,520/- on the basis that the transaction was not at arm's length. The Assessing Officer (AO) and CIT(A) upheld this adjustment.

What were the issues?

Whether an addition made based on a statutory provision that was omitted prior to the assessment order is valid. Whether the transfer pricing adjustment made by the TPO was justified based on the method adopted by the assessee.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(3),Section 250,Section 92CA,Section 92BA

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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA

For Appellant: Shri Mehul Ranpura, Ld. AR
For Respondent: Shri Durga Dutt, Ld. CIT(DR)
Hearing: 27/11/2025

Per, Dr. Arjun Lal Saini, AM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2016-17, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by Commissioner of Income-tax, Appeal CIT(A), Ahmedabad-13 dated 06.10.2023 [in short, “Ld. CIT(A)”], which in turn arises out of an order passed by the assessing officer u/s 143(3) r.w.s. 144C(3) of the Act, vide order dated 19.12.2019. 2. Grounds of appeal r

The order continues below.

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