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TMI Blog2018 (7) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... inable. - I.T.A. No. 322/2017 - - - Dated:- 28-6-2018 - Dr. Vineet Kothari And Mrs. S. Sujatha, J.J. Mr. Aravind K.V. Adv.- For the Appellant Mr. T. Suryanarayana, adv.-For the Respondent JUDGMENT 1. The Appellants-Revenue have filed this appeal u/s.260A of the Income Tax Act, 1961, raising purportedly certain substantial questions of law arising from the order of the ITAT, Bench A , Bangalore, dated 26.10.2016 passed in IT(TP)A No.238/Bang/2016 (Business Process Outsourcing (India) Pvt. Ltd., vs. The Asst. Commissioner of Income Tax) for A.Y.2010-11. 2. The proposed substantial questions of law and additional substantial question of law framed in the Memorandum of appeal by the Appellants-Revenue are quoted below fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther the Hon ble Tribunal is correct on facts and law in holding Provision for bad and doubtful debts as operating in nature without ascertaining the nexus with the business activity of the taxpayer? . 3. The learned Tribunal, after discussing the rival contentions of both the Appellants-Revenue and the Respondent-assessee, has given the following findings against Revenue with regard to various issues raised before it with regard to Transfer Pricing and Transfer Pricing Adjustments made by the concerned authorities below. We consider it appropriate to quote from the order of Tribunal rejecting the Application seeking a review before Tribunal as hereunder:- Regarding substantial question of law No.1 - M/s. Accentia Technologi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall workout the PLI giving effect to out directions . Regarding substantial question of law No. 2 - M/s. R. Systems International Ltd. 17. We find in the case of Ameriprise India (P) Ltd., (2016) 66 taxmann.com 246 (Delhi- Tribunal), it was held that if the relevant data for the financial year can be deduced from the information available from their annual report, then, there can be objection to the inclusion of these companies in the list of comparables with the adjusted data for the relevant financial year itself. Even in the case of Mekinsey Knowledge Centre India Pvt. Ltd. (ITA 217/2014), the High Court of Delhi held that if from the available data on record, the results for financial year can reasonably be extrapolated then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated as non-operating in nature as the operations for that particular period had been seized and therefore no activities were being performed. 13. Personal expenses depreciation and other maintenance related expenses and rent are held as non operating in nature . Regarding Addl. substantial question of law - 32. With respect to Ground No.7, the AO/DRP had considered provision for bad and doubtful debts as non operating nature. In the case of Techbooks International Pvt. Ltd., vs. DCIT (ITA No.240/Del/2015). The Hon ble ITAT in its judgment placed reliance upon considering provision of bad debts as operating in nature. In this regard, relevant extract of said judgment is provided below; 33. In light of the above, p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 to any 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 found to be devoid of merit and the same are liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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