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TMI Blog2018 (7) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms. Jinita Chatterjee, Adv. for Respondent Assessee 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, A Bench, Bangalore, dated 21.10.2016 passed in IT(TP)A No.113/Bang/2014 (M/s.Tory Harris Business Solutions Pvt. Ltd., vs. The Deputy Commissioner of Income-Tax) for A.Y.2009-10. 2. The proposed substantial questions of law framed in the Memorandum of appeal by the Appellants-Revenue are quoted below for ready reference:- Turnover filter 1. Whether on the facts and circumstances of the case, the Tribunal is right in law by directing the TPO to consider only those uncontrolled c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxpayer or the TPO results in fresh comparability analysis and therefore a piecemeal approach negates the whole concept of comparability analysis? 6. Whether on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition made by the Assessing Officer without appreciating that due to the amendment in section 194J and section 9 of the IT Act, the charges paid for leased line come under the purview of section 194J of the Act and therefore liable to TDS? 7. Whether on the facts and in the circumstances of the case, the Tribunal was justified in directing the Assessing Officer to reduce the expenditure incurred in foreign currency both from the Export Turnover and Total Turnover for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of its order. xxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxx As for the decision of Capegemini Ind. Pvt. Ltd., (supra) relied on by the learned DR, there was no linear relationship between margin and turn over in the case of comparables selected and the revenue was able to substantiate this through a plotted graph produced before the TPO. Here the revenue has not been able to show us the absence of a relationship between the margin and turn over in the case of comparables which had turn over in excess of ₹ 200 Crores. We are therefore, of the opinion that M/s Tata Elxsi Ltd., M/s Sasken Communication Tech. Ltd., M/s Persistent Systems Ltd., M/s Zylog Systems Ltd., M/s Mindtree Ltd., M/s L T Infotech Ltd., and M/s Infosys L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ech. Ltd., and M/s R.S. Software Ind. Ltd., 5. This Court in ITA No.536/2015 C/w ITA No.537/2015 delivered on 25.06.2018 (Prl. Commissioner of Income Tax Anr. Vs. M/s. Softbrands India Pvt. Ltd.,) has held that in these type of cases, unless an ex-facie perversity in the findings of the learned Income Tax Appellate Tribunal is established by the appellants, the appeal at the instance of an assessee or the Revenue under Section 260-A of the Act is not maintainable. The relevant portion of the said judgment is quoted below for ready reference: Conclusion: 55. A substantial quantum of international trade and transactions depends upon the fair and quick judicial dispensation in such cases. Had it been a case of substantial q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ables to be good comparables to arrive at an Arm s Length Price in the case of the assessees with which the assessees may not be satisfied and have filed such appeals before this Court. Therefore we clarify that mere dissatisfaction with the findings of facts arrived at by the learned Tribunal is not at all a sufficient reason to invoke Section 260-A of the Act before this Court. 58. The appeals filed by the Revenue are therefore dismissed with no order as to costs. 6. Having heard the learned counsels for the parties, we are therefore of the opinion that no substantial question of law arises in the present case also. The appeal filed by the Appellants-Revenue is liable to be dismissed and it is dismissed accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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