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2018 (10) TMI 192 - HC - Income TaxTPA - comparable selection - substantial question of law - Held that:- Tribunal came to the conclusion that the activities on account of the Infrastructure Management Services and E-learning and Digital Consulting constitute 17% and 35% respectively of the total revenue. These are IT enabled services. These are not akin to software design and development services being rendered by the Assessee and therefore benchmarking was improper. The comparables relied upon by the Transfer Pricing Officer were thus not comparable at all. Assessee rendered services such as software design and development. These are mere services which have been rendered in prior assessment year 2008-2009. If those services enable the Tribunal to take a view in favour of the Assessee for the prior assessment year, then, even for the following assessment year, the Tribunal found it safe to rely upon its own findings and conclusions for the prior assessment year. Very detailed reasons have been assigned but essentially on the above lines in the order under appeal. We have found that these are factual matters. We are unable to find any substantial question of law resulting from such an exercise. In fact, in the case of Principal Commissioner of Income Tax-1 v/s Barclays Technology Centre India Private Limited [2018 (8) TMI 574 - BOMBAY HIGH COURT] a Division Bench of this Court had an occasion to consider somewhat similar questions and it found that the Tribunal's view deserves to be upheld. This Court was rather surprised as to why the Revenue brings such Appeals to this court and regularly. The Courts in India seem to be taking a view that the Revenue has routinely brought such matters before this Court knowing fully well that the Transfer Pricing particularly with regard to exclusion and inclusion of certain comparables to determine Arm's Length Price (ALP) would not necessarily give rise to purely legal questions or substantial questions of law.
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