TPO has no jurisdiction to determine ‘status of residence’ of an entity by applying POEM: ITAT

TRANSFER PRICING : Where AO came to a finding that control and management of business of assessee was wholly situated in India, then he had to proceed further; AO having failed to do so, action of TPO in applying Profit Split Method for bench-marking transactions without picking comparable was beyond his jurisdiction; further, where TPO has not exercised his jurisdiction, DRP in exercise of its powers cannot benchmark new transaction though reported by assessee, in hands of assessee

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000189014/tpo-has-no-jurisdiction-to-determine-‘status-of-residence’-of-an-entity-by-applying-poem-itat.aspx