The Tax Publishers2020 TaxPub(DT) 2492 (Bom-HC)

INCOME TAX ACT, 1961

Section 260A

It is not open to either the assessee or the Revenue to invoke jurisdiction of the High Court under section 260A merely because the Tribunal comes to reverse or modify the findings given by the TPO and / or by the DRP leaving out certain comparables or adding certain comparables for determining the ALP in the hands of the assessee.

Appeal (High Court) - Maintainability - No substantial question of law -

Assessee-company was engaged in business of providing non-binding investment advisory services. Revenue filed an instant appeal challenging Tribunal's decision of excluding a company 'M' from list of valid comparables and including two companies namely 'I' and 'ID' as valid comparables to assessee-company for the purpose of benchmarking its international transactions. Held: It was found that Tribunal after exhaustive analysis came to the conclusion that 'M' was not functionally similar to that of the assessee whereas 'I' and 'ID' were found to be functionally similar to that of the assessee. Consequently, the 'M' was excluded, whereas the 'I' and the 'ID' were included in the final set of comparables. Further, it is not open to either the assessee or the Revenue to invoke jurisdiction of the High Court under section 260A merely because the Tribunal comes to reverse or modify the findings given by the TPO and / or by the DRP leaving out certain comparables or adding certain comparables for determining the ALP in the hands of the assessee. Therefore, no substantial question of law arose from the impugned order of the Tribunal and hence, the appeal filed by the Revenue was dismissed.

REFERRED : Pr. CIT v. M/s. Eight Roads Investment Advisors Pvt. Ltd. (Formerly known as FIL Capital Advisors India Pvt. Ltd.) [INCOME TAX APPEAL NO. 1125 OF 2017, dt. 27-2-2020] Pr. CIT v. M/s. Softbrands India P. Ltd. ITA Nos.536 and 537 of 2015, decided on 25-6-2018 : 2018 TaxPub(DT) 3520 (Karn-HC)

FAVOUR : Against the appellant/Appeal dismissed

A.Y. :



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