Mohit S. Shah, CJ.

At the request of learned counsel for both the sides, the writ petition was taken up for final disposal.

2. By this petition under Article 226 of the Constitution of India, the petitioner challenges:-

(a) the order dated 28 January 2013 of the Transfer Pricing Officer (TPO) passed in terms of Section 92CA of the Income Tax Act,1961 (“the Act”); and

(b) the Draft Assessment Order dated 22 March 2013 passed by Assessing Officer(AO) in terms of Section 143(3) read with Section 144C (1) of the Act in consequence of order dated 28 January 2013 of the TPO.

3. Learned counsel for the petitioner has raised the following questions for consideration by this Court:

(1) Whether the existence of a potentially taxable income or an expenditure (capital or revenue) that impacts computation of taxable income is a sine qua non for the invocation of jurisdiction under Chapter X?

(2) Whether Chapter X confers the jurisdiction to

a) treat a transaction on the capital account as a revenue transaction,

b) treat a single transaction of issue of shares as two transactions – viz. as that of issue of shares and of grant of a financial accommodation (equal to the difference in val