9911796707
TMI Blog2025 (4) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... have approved the determination of arm's length price by following the guidelines stipulated under Chapter X of Income-tax Act, 1961 read with corresponding Rules in this regard?" 3. With the consent of the learned counsel for the parties, the appeal is taken up for final disposal immediately. 4. In this case, the Tribunal did not have the benefit of the decision of the Hon'ble Supreme Court in the case of Sap Labs India (P) Ltd. Vs. Income Tax Officer (2023) 149 taxmann.com 327 (SC). The observations in paragraphs 7 and 8 of Sap Labs India (P) Ltd. (supra) are relevant and are transcribed below for the convenience of reference: - "7. Therefore, while determining the arm's length price, the Tribunal has to follow the guidelines stipula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . that in the transfer pricing matters, the determination of the arm's length price by the Tribunal is final and cannot be subject matter of scrutiny under Section 260A of the IT Act cannot be accepted. 8. Thus, in each case, the High Court should examine whether the guidelines laid down in the Act and the Rules are followed while determining the arm's length price. Therefore, we are of the opinion that the absolute proposition of law laid down by the Karnataka High Court in the case of Softbrands India (P) ltd. (supra) that in the matter of transfer pricing, determination of the arm's length price by the Tribunal shall be final and cannot be subject matter of scrutiny and the High Court is precluded from examining the correctness of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the merits of the case open for determination by the ITAT. 8. The substantial question of law is answered in the above terms. The ITAT's impugned order is set aside. The assessee's appeal, ITA No. 7194/Mum/2012, is restored to the ITAT file. The ITAT is directed to dispose of the appeal given our above observations and the observations of the Hon'ble Supreme Court in the case of Sap Labs India (P) Ltd. (supra). 9. We note that a similar order was made on January 23, 2025, in Income Tax Appeal No. 1011 of 2018 under somewhat similar circumstances. The reasoning from that order is also adopted in this order. 10. The substantial question of law is answered accordingly, and this appeal is disposed of in the above terms without any cost or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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