TMI Blog2018 (8) TMI 2023X X X X Extracts X X X X X X X X Extracts X X X X ..... of the learned Income Tax Appellate Tribunal is established by the appellant, the appeal at the instance of an assessee or the Revenue under Section 260-A of the Act is not maintainable. 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 Taxation Avoidance 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 subst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Tribunal can be considered as perverse in nature since Tribunal has held that RPM is the most appropriate method in the taxpayers case, when the taxpayer has performed more functions than that of a routine trader as evident from the huge loss reported at the entity level and ignoring the evidence brought in by the Transfer Pricing Officer? 3.The learned Tribunal, after discussing the rival contentions of both the Appellants-Revenue and Respondent-Assessee, has returned the findings as under: Regarding Substantial Question of Law: 16. Having heard the rival submissions and from a careful perusal of the record, we find that undisputedly the assessee is a trading company and carries out distribution and marketing of produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If there is no value addition to the finished goods purchased from the AE and sold in the market as it is, then gross profit margin earned on such transactions become a determining factor to analyse the gross compensation after the cost of sales. Accordingly,the Tribunal held that the RPM is the most appropriate method 20. Turning to the facts of the case, we find that undisputedly, assessee is a distributor of AO Smith China which is involved in the manufacture of water heaters and sells the water heater imported from AO Smith China in India without making any value addition to the product. In a similar type of case, it has been repeatedly held by the Tribunal and the Hon ble High Court of Bombay that in case of distributor, whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore 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 toany 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 foun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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