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TMI Blog2018 (7) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The appellants - Revenue have suggested six substantial questions of law which are quoted below for ready reference: - "(1) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in seeking extract comparability, while searching for comparable companies of the assessee under Transaction Net Margin Method whereas the requirement of law and international jurisprudence requite seeking similar comparables companies?" (2) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in imposing conditions beyond law where the requirement of law is to acknowledge only those differences that are likely to materially affect the margin? (3) Whether on the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant portion of which is quoted below for ready reference:- "6.1 The first objection of the assessee is no selection of certain comparable companies and rejection of certain comparables selected by the assessee. TPO in his analysis has finally selected the following 20 companies with OP/Cost of 23.65%. The list of comparables are as under: Sl.No Name of Company Net Margins as TPO Order (before WCA) 1 Avani Cincom Technologies 25.62% 2 Celestial Biolabs 87.94% 3 Kals Information Systems Ltd.(Seg) 31.29% 4 Lucid Software Ltd. 16.50% 5 Tata Elxsi (Seg) 18.97% 6 Infosys Technologies Ltd. 40.37% 7 Wipro Ltd.(Seg) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two companies rejected by the TPO:- (1) Aditya Birla Minacs IT Services Ltd. (2) Aditya Birla Minacs Technologies Ltd. 7.1 The reason for rejection of the above companies was that they failed RPT filter. The objection of the assessee was that TPO has included the reimbursement cost in operating cost. It is submitted that the reimbursement cost does not have any effect on profitability and if they are excluded, then they are within the filter rang adopted by the TPO. Detailed objections and working as provided in objections to DRP at page 72 to 74 are referred in support of the contentions. 7.2 The above companies were considered by the Coordinate Bench in the case of Yodlee Infotech Pvt.Ltd. in IT(TP)A No.1538/Bang/ 2012 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idance 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 n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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