TMI Blog2018 (7) TMI 2076X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 9-7-2018 - The Hon'ble Dr.Justice Vineet Kothari And The Hon ble Mrs.Justice S.Sujatha Mr. K.V. Aravind, Adv. for Appellants- Revenue Mr. Tata Krishna, Adv. for Mr. K.K. Chythanya, Adv. for Respondent - Assessee JUDGMENT S. Sujatha, 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 A , Bangalore, dated 05.08.2011 passed in ITA No.1231/Bang/2010 (M/s.Genisys Integrating Systems (India) Pvt. Ltd., vs. The Deputy Commissioner of Income Tax) for A.Y.2006-07. 2. The proposed substantial questions of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal, 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 Pricing and Transfer Pricing Adjustments made by the concerned authorities below. We consider it appropriate to quote the relevant portion of the order of Tribunal, which runs as hereunder:- 6.1 Having heard both the parties and having considered their rival contentions, we find that Sec.92B of the IT Act gives the meaning of international transactions to mean a transaction between two or more associated enterprises either or both of whom are nonresident .. . Chapter-X of IT Act rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e down reducing profit margin. Thus, as held by the various benches of the Tribunal, when companies which are loss making are excluded from comparables, then the super profit making companies should also be excluded. For the purpose of classification of companies on the basis of net sales or turnover, we find that a reasonable classification has to be made. Dun Bradstreet and NASSCOM have given different ranges. Taking the Indian scenario into consideration, we feel that the classification made by Dun Bradstreet is more suitable and reasonable. In view of the same, we hold that the turnover filter is very important and the companies having a turnover of ₹ 1.00 core to 200 crores have to be taken as a particular range and the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing decisions: 1.M/s Sap Labs India Pvt.Ltd., Vs ACIT 2010-TII-44 ITAT-BANG-TP 2.Philips Software Centre Pvt.Ltd., 26 SOT 226 3. MSS India Pvt.Ltd., 32 SOT 132 4. Customer Services India Pvt.Ltd., Vs ACIT 30 SOT 486 5. Skoda Auto India Pvt.Ltd., Vs ACIT 2009-TIOL-214- ITAT-PUNE 6. Development Consultants Pvt.Ltd., Vs DCIT 23 SOT 455 7. Sony India Pvt.Ltd., 315 ITR 150 8. Cumins India Ltd., Vs DCIT ITA NO.277 1412/PN/07 9. TNT India Pvt.Ltd., Vs ACIT 10 Taxman.com 161 10. Abhishek Auto Industries Ltd Vs DCIT 2010-TII- 54-ITAT-DEL-TP 13.1 The learned DR however, relied on the orders of the authorities and submitted that 5% is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed 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 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 Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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