ITAT Rules Non-Reference to TPO is Curable Procedural Irregularity

ITAT Determines Procedural Irregularity in TPO Reference

The Income Tax Appellate Tribunal (ITAT) has ruled that the failure to refer a matter to the Transfer Pricing Officer (TPO) for the determination of Arm's Length Price (ALP) represents a curable procedural irregularity. This decision reinstates the matter for appropriate proceedings.

The ITAT highlighted that such procedural errors should not lead to a dismissal of the case, as they could potentially be rectified in subsequent hearings. The ruling emphasizes the importance of adherence to procedural guidelines while maintaining flexibility for correction of identified errors.

For practitioners, this ruling serves as a reminder to ensure compliance with procedural obligations, while also allowing for rectifications when genuine oversights occur. The decision also underscores the ITAT's willingness to ensure that substantive justice prevails over procedural lapses.