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TMI Blog2018 (11) TMI 1552X X X X Extracts X X X X X X X X Extracts X X X X ..... . Hence, we are satisfied that such deduction shall be allowed from the total turnover in same proportion as well. TPA - selection of comparable - Held that:- Since the Tribunal has examined the profile and datas of Bodh tree Consulting Ltd. and has come to the conclusion that this com pany cannot be taken as good comparable for computing the arm's length price (ALP), we find no justification in re-examining the issue again. Accordingly, following the aforesaid order of the Tribunal, we uphold the exclusion of Bodhtree Consulting Ltd. from the list of comparables. Sankhya Infotech Ltd. was examined by the Tribunal and the Tribunal following the view taken in the case of Kodiak Network India Ltd.[2015 (8) TMI 225 - ITAT BANGALORE] has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also and accordingly recomputed the deduction under section 10A without appreciating the fact that there is no provision in section 10A that such expenses should be reduced from the total turnover also as clause (iv) of the Explanation 2 to section 10A provides that such expenses are to be reduced only from the export turnover ? 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in excluding certain comparables on the ground of functional dissimilarity even when the Transfer Pricing Officer has rightly chosen the same considering its functions which are similar to the assessee's and has satisfied all the required tests and without doing an FAR analysis of the taxpayer with those other cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elief under section 10A of the Income-tax Act, the amount of communication expenses should be excluded from the total turnover if the same are reduced from the export turnover ? While giving the answer to the issue, the High Court, inter alia, held that when a particular word is not defined by the Legislature and an ordinary meaning is to be attributed to it, the said ordinary meaning is to be in conformity with the context in which it is used. Hence, what is excluded from 'export turnover' must also be excluded from 'total turnover', since one of the components of 'total turnover' is export turnover. Any other interpretation would run counter to the legislative intent and would be impermissible . . . In the ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing the order of the Tribunal in the case of Kodiak Networks India Pvt. Ltd. [IT(TP)A No. 532/Bang/2015 Co 119/Bang/2015]. A copy of order of Kodiak Networks India Pvt. Ltd. is placed on record. The relevant observations of the Tribunal are extracted hereunder for the sake of reference : . . . 13. Since the Tribunal has examined the profile and datas of Bodh tree Consulting Ltd. and has come to the conclusion that this com pany cannot be taken as good comparable for computing the arm's length price (ALP), we find no justification in re-examining the issue again. Accordingly, following the aforesaid order of the Tribunal, we uphold the exclusion of Bodhtree Consulting Ltd. from the list of comparables. 16. With respect to S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR) : Conclusion 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 question of interpretation of pro visions of Double Taxation Avoidance Treaties (DTAA), interpretation of provisions of the Income-tax Act or overriding effect of the treaties over the domestic legislations or the questions like treaty shopping, base erosion and profit shifting (BEPS), Transfer of Shares in Tax Havens (like in the case of Vodafone etc.), if based on relevant facts, such substantial questions of law could be raised before the High Court under section 260A of the Act, the courts could have embarked upon such exercise of framing and answe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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