[2011] 198 Taxman 102 (SC)

SUPREME COURT OF INDIA

Maruti Suzuki India Ltd.*
v.
Addl. Commissioner of Income-tax
S.H. KAPADIA, CJ.
K.S. RADHAKRISHNAN AND SWATANTER KUMAR, JJ.
CIVIL APPEAL NO. 8457 OF 2010
OCTOBER  1, 2010 

Section 92C of the Income-tax Act, 1961 - Transfer pricing - Computation of arm's length
price - High Court remitted matter to TPO for determining ALP with liberty to issue fresh
show-cause notice - High Court apart from issuing a direction to issue a new show-
cause notice also made certain observations on merits of case and gave certain
directions to TPO, which virtually concluded matter - It was against those directions,
that assessee filed instant petition - Whether in aforesaid situation, TPO, who in
meantime had already issued a show-cause notice, was to be directed to proceed with
matter in accordance with law uninfluenced by observations/directions given by High
Court in impugned judgment - Held, yes
FACTS
 
In the instant case the High Court had remitted the matter to the TPO with liberty to issue fresh show-
cause notice. The High Court had further directed the TPO to decide the matter in accordance with law.
It was against the directions of the High Court that the assessee filed instant petition.
HELD
 
It was found that the High Court had not merely set aside the original show-cause notice but it had
made certain observations on the merits of the case and had given directions to the TPO, which virtually
concluded the matter. In the circumstances, on that limited issue, the TPO who in the meantime, had
already issued a show-cause notice was to be directed to proceed with the matter in accordance with
law uninfluenced by the observations/ directions given by the High Court in the impugned judgment.
[Para 3]
CASES REFERRED TO
 
Maruti Suzuki India Ltd. v. Addl. CIT/TPO [2010] 192 Taxman 317 (Delhi) [Para 3]
S. Ganesh, Nageswar Rao and Ashish Gupta for the Appellant. Mohan Parasaran, Rahul Kaushik
and Gaurav Dhingra for the Respondent.
ORDER
 
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.
■■

*In favour of assessee.