TMI Blog2018 (7) TMI 1847X X X X Extracts X X X X X X X X Extracts X X X X ..... ram U.R. Adv. for Mr. S. Sriranga, Adv. for Respondent - Assessee JUDGMENT 1. The Appellants-Revenue have filed this appeal u/s.260A of the Income Tax Act, 1961, raising purportedly certain substantial questions of law arising from the order of the ITAT, Bangalore Bench B , Bangalore, dated 22.11.2012 passed in ITA No.828/Bang/2010 ( M/s. Toyota Kirloskar Motors Pvt. Ltd., vs. Asst. Commissioner of Income Tax ) for A.Y.2003-04. 2. The proposed substantial questions of law framed in the Memorandum of appeal by the Appellants-Revenue are quoted below for ready reference:- 1. Whether the Tribunal on the facts and in the circumstances of the case was correct in holding that combined transaction approach is a corre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d also trading / distribution of passenger car model Camry and spare parts and components. In the relevant period, the assessee had entered into various international transactions with AE s. The learned counsel for the assessee submitted that the assessee carried out its T.P.Study documentation at the entity / enterprise level using the Combined Transaction Approach and not at the segmental level, for the reason that its trading and manufacturing activities are closely inter-linked. It was also submitted that part of the trading activities were as a result of the manufacturing activities including warranty commitments. The learned counsel for the assessee also submitted that the data regarding comparable transactions were available only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This view is supported by the OECD T.P. Guidelines, 2010, relied on by the assessee. This view is also buttressed by the fact that the comparable companies are also trading in spare parts and components. On a overall consideration, it can be concluded that trading in spare parts is closely inter-linked with the manufacturing segment of the assessee. We are of the view that no meaningful purpose would be served in segregating the trading and manufacturing segments, particularly when the assessee and the comparable companies are at par with regard to the nature and scale of combined activities. Needless to add that this finding / decision by its very nature has to be case-specific and year- specific as the decision is based on the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 56. 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 liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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