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2018 (7) TMI 2129 - HC - Income TaxMaintainability of Appeal against ITAT order - substantial question of law or not - Tribunal applying turnover filter and excluding 6 comparable chosen by the Transfer Pricing Officer - Tribunal holding that Foreign Exchange Fluctuation gains are required to be added to operating revenue - Tribunal confirming the order of DRP with regard to holding that working capital adjustment has not been provided as it is negative impact and as such DRP’s direction to grant risk adjustment - ITAT directing the TPO to examine the financials of some companies and adopt a threshold limit of 15% of RPT as the basis for rejecting comparable companies - HELD THAT:- Controversy involved herein is no more res integra in view of the decision of this Court in M/s.Softbrands India Pvt. Ltd. [2018 (6) TMI 1327 - KARNATAKA HIGH COURT]wherein it has been observed that unless the finding of the Tribunal is found ex facie perverse, the Appeal u/s. 260-A of the Act, is not maintainable. A substantial quantum of international trade and transactions depends upon the fair and quick judicial dispensation in such cases. Had it been a case of substantial question of interpretation of provisions of Double Taxation Avoidance Treaties (DTAA), interpretation of provisions of the Income Tax Act or Overriding Effect of the Treaties over the Domestic Legislations or the questions like Treaty Shopping, Base Erosion and Profit Shifting (BEPS), Transfer of Shares in Tax Havens (like in the case of Vodafone etc.), if based on relevant facts, such substantial questions of law could be raised before the High Court under Section 260-A of the Act, the Courts could have embarked upon such exercise of framing and answering such substantial question of law. On the other hand, the appeals of the present tenor as to whether the comparables have been rightly picked up or not, Filters for arriving at the correct list of comparables have been rightly applied or not, do not in our considered opinion, give rise to any substantial question of law. The present appeals filed by the Revenue do not give rise to any substantial question of law
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