“reference to TPO”
The decision most relied on for reference to TPO is PCIT v. Texport Overseas (P.) Ltd. (114 Taxmann.com 568), cited in 69 judgments on BharatTax.
Leading authorities on reference to TPO
A reference to the Transfer Pricing Officer (TPO) is invalid and bad in law, which renders consequential Transfer Pricing adjustments by the Assessing Officer liable for deletion.
A prima facie opinion by the Assessing Officer is sufficient to make a reference to the Transfer Pricing Officer. The Assessing Officer is not required to form a considered opinion after examining all materials before making a reference.
CBDT Instruction No. 3/2016, clarifying the procedure for making references to the TPO, is retrospective and applies to pending cases, even where a reference was made before the instruction's issue. Such an instruction clarifies the existing legal position and is not a procedural change that should only apply prospectively.
