2017 (5) TMI 1828 - HC - Income Tax

TP Adjustment - inclusion of comparables for the purpose of determining the arm s length price of international transaction involving the Assessee - ITAT by the impugned order remanded to TPO the issues regarding the working out of the transfer pricing adjustment on the basis of certain parameters mentioned therein. HELD THAT - As pointed out by Assessee, that even if the Profit Level Indicator (PLI) is revised on the basis of the remand order of the ITAT, the PLI based on Operative Profit (OP)/cost will work out to -0.04%. Therefore, the remand order does not give rise to any substantial question of law requiring determination by this Court. The questions urged by the Revenue in the present case are left open to be examined in an appropriate case.

Summary

The High Court of Delhi dismissed the Revenue's appeal against an order of the Income Tax Appellate Tribunal concerning the inclusion of comparables for determining the arm's length price of an international transaction. The delay in re-filing was condoned. The appeal was dismissed as the remand order did not raise any substantial question of law. The questions raised by the Revenue were left open for examination in a future case.