TMI Blog2018 (7) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... to inadvertent, unlawful, meaningless and illogical result which would cause grave injustice to the Respondent which could have never been the intention of the legislature. Comparable selection criteria - Held that:- This Court in Prl.Commissioner of Income Tax & Anr. Vs. M/s.Softbrands India Pvt. Ltd. (2018 (6) TMI 1327 - KARNATAKA HIGH COURT ) has held that in these type of findings of the learned Tribunal remained final fact findings of the learned Tribunal and are binding on the lower authorities of the Department as well as this Court and unless an established ex-facie perversity is found in the findings of the learned Tribunal, the appeal u/s.260A of the Act is not maintainable. - I.T.A.No.37/2016 - - - Dated:- 29-6-2018 - Dr. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e selection of the comparables on the basis of specific facts brought on record by the TPO ? (2) Whether the Tribunal, was right in facts and law in excluding the comparables without considering the assessee specific information collected under section 133(6) of the Act from the comparables, wherein clear facts were submitted to state that the comparables are all into software development services in one way or the other and all are functionally similar to that of the assessee? (3) Whether the Tribunal was right in directing to exclude M/s. Celestial Biolabs Ltd., by placing reliance on other benches of Tribunal, without considering the assessee specific information collected under section 133(6) of the Act, based on which the TPO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the total turnover also, without appreciating that there is no provision in section 10A to the effect that such expenses should also be reduced from the total turnover, as clause (iv) of the Explanation to section 10A provides that such expenses have to be reduced only from the export turnover? 3. Learned counsel for the Appellants-Revenue Mr.K.V.Aravind submits that the issues involved in substantial questions of law Nos. 3, 4 and 5 are covered by the substantial question of law No.1. 4. The learned Tribunal, after discussing the rival contentions of both the Appellants-Revenue and the Respondent-assessee, has given the following findings against Revenue with regard to various issues raised before it with regard to Transfer Pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been excluded from the list of comparables from providers software development services in the judicial decisions cited by the assessee (supra at para 6.1.2 of this order). The relevant portion at para 15 of the order in the case of NXP Semi-conductors India (P) Ltd. (supra) is extracted hereunder:- 6.3.2. In view of the above mentioned decision of the co-ordinate bench of this Tribunal in the case of NXP Semi-conductors India P. Ltd. (supra) for A.Y. 2008-09. We direct the Assessing Officer/TPO to omit this company from the set of comparables to be applied to the assessee. M/s.Celestial Biolabs Ltd. 7.4.1. We have heard the rival contentions and perused and carefully considered the material on record; including the judicia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Commissioner of Income-tax, Central III vs. HCL Technologies Ltd., [2018] 93 Taxmann.com 33(SC). The relevant portion of the judgment of the Hon ble Supreme Court in the case of HCL Technologies Ltd. (supra), is quoted below for ready reference:- 17. The similar nature of controversy, akin this case, arose before the Karnataka High Court in CIT v. Tata Elxsi Ltd. [2012] 204 Taxman 321/17/taxman.com 100/349 ITR 98. The issue before the Karnataka High Court was whether the Tribunal was correct in holding that while computing relief under Section 10A of the IT Act, the amount of communication expenses should be excluded from the total turnover if the same are reduced from the export turnover? While giving the answe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ltd.,) has held that in these type of findings of the learned Tribunal remained final fact findings of the learned Tribunal and are binding on the lower authorities of the Department as well as this Court and unless an established ex-facie perversity is found in the findings of the learned Tribunal, the appeal u/s.260A of the Act is not maintainable. We do not find any such perversity in the aforesaid findings. 7. The relevant portion of the aforesaid judgment is quoted below for ready reference:- Conclusion: 55. 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 T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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