P.S.Dinesh Kumar, J. - (1.) These income tax appeals are presented by the Revenue raising following questions of law: i) Whether on the facts and circumstances of the case and in law, the Tribunalis right in holding that, CBDT Instruction No.3 dated 20.05.2003 is not binding on the Assessing Officer and as such the Assessing Officer himself determining the Transfer Pricing adjustment is justified and hence the order of assessment cannot be said to be erroneous in order to invoke the provisions of section 263 by the Commissioner ofincome Tax? ii) Whether on the facts and circumstances of the case and in law, the Tribunalis right in holding that, the Assessing Officer himself determining the Transfer Pricing adjustment without referring the matter to the Transfer Pricing Officer is one of the possible views taken and as such the order of assessment cannot be said to be erroneous in order to invoke the provisions of section 263 by the Commissioner ofincome Tax? iii ) Whether on the facts and in the circumstances of the case and in law, the Tribunalis justified in quashing the order passed by the Commissioner under section 263 which was invoked on two separate grounds and the Tribunal deciding only one ground and leaving the other issue undecided and as such the order of the Tribunal perverse?
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(3.) We have heard Shri Y.V.Raviraj, learned Standing Counsel for the Revenue and Shri K.G.Raghavan, learned Senior Advocate for the assessee-respondent.;