S.C : High Court can not virtually decide the matter & restore the matter to TPO

Supreme Court Of India

Maruti Suzuki India Ltd. Vs. ACIT

Section : 92C

S.H. Kapadia, CJ.

K.S. Radhakrishnan And Swatanter Kumar, JJ.

Civil Appeal No. 8457 Of 2010

October  1, 2010


Leave granted.

2. By consent, the matter is taken up for hearing.

3. In this case, the High Court has remitted the matter to the Transfer Pricing Officer (‘TPO’ for short) with liberty to issue fresh show-cause notice. The High Court has further directed the TPO to decide the matter in accordance with law. Further, on going through the impugned judgment of the High Court dated 1-7-2010 [reported as Maruti Suzuki India Ltd. v. Addl. CIT/TPO [2010] 192 Taxman 317 we find that the High Court has not merely set aside the original show-cause notice but it has made certain observations on the merits of the case and has given directions to the TPO, which virtually concludes the matter. In the circumstances, on that limited issue, we, hereby direct the TPO, who, in the meantime, has already issued a show-cause notice on 16-9-2010, to proceed with the matter in accordance with law uninfluenced by the observations/directions given by the High Court in the impugned judgment dated 1-7-2010.

The TPO will decide this matter on or before 31-12-2010.

4. The civil appeal is, accordingly, disposed of with no order as to costs.

[Citation : 335 ITR 121]

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