S. 263: TPO’s acceptance of ALP shows two views are possible & CIT has no jurisdiction to revise assessment

CIT vs. SAP Labs Pvt. Ltd (Karnataka High Court)

On the day the reference was made by the AO to the TPO, there was no return pending for consideration by him and therefore, the very reference was bad. Even otherwise, the said Transfer Pricing Authority did not find fault with the adjudication of determining arms length price by the Assessing Authority. In those circumstances, the CIT committed an error in exercising his power u/s 263 and the Tribunal was justified in interfering with the said order.