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2018 (7) TMI 2198 - HC - Income TaxMaintainability of appeal in HC u/s 260A - TP Adjustment - Negative working capital adjustment - Whether the Tribunal was right in directing the TPO to consider the claim of risk adjustment even when there is no reliable method to convert the qualitative difference into quantitative difference and to make adjustment on account of risk level? - Whether Tribunal was right in taking different stands on adjustments to comparables margins to make them comparable to the tested party, so that the assessee benefits both ways and Revenue looses both ways since it goes against the principles of quality and natural justice? - HELD THAT:- As decided in own case [2018 (6) TMI 1327 - KARNATAKA HIGH COURT] has held that in these type of cases, unless an ex-facie perversity in the findings of the learned Income Tax Appellate Tribunal is established by the appellant, the appeal at the instance of an assessee or the Revenue u/s 260-A of the Act is not maintainable. We are therefore of the considered opinion that the present appeals filed by the Revenue do not give rise to any substantial question of law and the suggested substantial questions of law do not meet the requirements of Section 260-A of the Act and thus the appeals filed by the Revenue are found to be devoid of merit and the same are liable to be dismissed. We make it clear that the same yardsticks and parameters will have to be applied, even if such appeals are filed by the Assessees, because, there may be cases where the Tribunal giving its own reasons and findings has found certain comparables to be good comparables to arrive at an ‘Arm’s Length Price’ in the case of the assessee with which the assessee may not be satisfied and have filed such appeals before this Court. Therefore we clarify that mere dissatisfaction with the findings of facts arrived at by the learned Tribunal is not at all a sufficient reason to invoke Section 260-A of the Act before this Court.
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