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Calcutta HC Quashes Transfer Pricing Order for No Hearing
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Calcutta High Courttax

Calcutta HC Quashes Transfer Pricing Order for No Hearing

October 11, 2026

Calcutta High Court quashed a transfer pricing adjustment under Section 92CA(3) due to denial of personal hearing and inadequate reasons.

Calcutta HC Quashes Transfer Pricing Order for No Hearing

The Calcutta High Court has quashed a transfer pricing assessment order passed under Section 92CA(3) of the Income Tax Act, 1961, holding that the taxpayer was denied a personal hearing and the order lacked reasoned justification.

The court emphasized that transfer pricing determinations substantially affect taxpayer rights and must comply with principles of natural justice.

"Failure to grant a personal hearing and record cogent reasons vitiates the order,"
the bench observed, relying on settled precedents including Vodafone International Holdings v. Union of India.

The ruling reaffirms that procedural fairness is non-negotiable in quasi-judicial proceedings. Tax practitioners should ensure all assessments, especially those involving international transactions, strictly adhere to hearing requirements and evidentiary standards under the Act.

Citations

  • Vodafone International Holdings v. Union of India (2012) 347 ITR 1 (SC)
Practice Areas:tax

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