2023 (5) TMI 1014 - SCH - Income Tax

TP Adjustment - HELD THAT - By passing the impugned judgment and order, the High Court has relied upon its earlier decision in the case of Principal Commissioner of Income Tax and Another vs. M/s Softbrands India Pvt. Ltd. 2018 (6) TMI 1327 - KARNATAKA HIGH COURT As required to be noted that the decision of the Karnataka High Court in the case of Softbrands India Pvt. Ltd., (supra) fell for consideration before this Court in the recent decision of this Court in the case of SAP Labs India Private Limited 2023 (4) TMI 859 - SUPREME COURT - Therefore, the matter is now required to be remitted back to the High Court to decide the Appeal afresh in accordance with law and on its own merits and in light of the observations made by this Court in the case of Sap Labs India Private Limited (supra) . The impugned judgment and order passed by the High Court insofar as it relates to transfer pricing is hereby quashed and set aside. The matter is remanded back to the High Court to consider the issues/questions with respect to transfer pricing afresh in accordance with law and in light of the observations made by this Court in Sap Labs India Private Limited (supra)

Summary

Issues involved:
The judgment deals with transfer pricing issues and the reliance on previous decisions by the High Court.

Transfer Pricing Issue:
The Supreme Court quashed and set aside the impugned judgment related to transfer pricing, directing the matter to be remitted back to the High Court for a fresh consideration in light of the observations made in a recent decision. The decision in the case of SAP Labs India Private Limited was cited, emphasizing the need for the High Court to decide the appeal afresh in accordance with the law and on its own merits.

Conclusion:
The Special Leave Petition was disposed of with the direction to the High Court to reconsider the transfer pricing issues in accordance with the law and the Supreme Court's observations in the case of SAP Labs India Private Limited.