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TMI Blog2019 (5) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... additional cost for Transportation from Gujarat to Chennai, whereas the cost of transportation in the comparable case of M/s.Lubrizol was less and therefore, suitable adjustment should be made in this regard while determining the Arms Length Price in the case of the Assessee. The learned Tribunal has found that since the Assessee has not been able to establish the cost of transportation in the comparable case of M/s.Lubrizol lesser than the Assessee, the argument of the Asessee that suitable adjustment should be made was not upheld. We are of the opinion that the said finding of the learned Tribunal does not give rise to any substantial question of law requiring our consideration u/s 260A. A Division Bench of Karnataka High Court, where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Lubrizol was not comparable or in the alternative, should have directed the Assessing Officer to provide adjustment in respect of the criteria due to which the appellant was differentiated from Lubrizol? iii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in upholding the adjustment for transportation cost while computing the arm's length price of the international transaction of the Appellant? 2. The relevant findings of the Income Tax Appellate Tribunal for determination of Arms Length Price and Transportation Cost in the case of the Assessee comparable to M/s.Lubrizol, who entered into international transactions are given below f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly, this issue is also remitted to the file of AO for fresh consideration. It is needless to say that opportunity of hearing to be given to assessee by AO/TPO before deciding the above issues. 6.2 Regarding transportation cost, it is submitted that the assessee incurred additional cost for transportation from Gujarat to Chennai whereas the cost of transportation in case of Lubrizol is less. However, we find that the assessee has not able to establish that the cost of transportation in case of Lubrizol is lesser than the assessee and Lubrizol is selling its goods only in local and thus arguments of assessee cannot be upheld. This ground is rejected. 3. As far as the two issues are c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06 ITR 513 (Karn.) has held by a detailed judgment that in the case of determination of Arms Length Price, unless a perversity in the order passed by the learned Tribunal is established, no substantial question of law will arise requiring interference under Section 260A of the Act. The relevant portion of the decision of the Division Bench Bench of Karnataka High Court is quoted below for ready reference:- 44. This Court cannot be expected to undertake the exercise of comparison of the comparables itself which is essentially a fact finding exercise. Neither the sufficient Data nor factual informations nor any technical expertise is available with this Court to undertake any such fact finding exercise in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidence and facts. Unless it is so, no other key or for that matter, even the in-consistent view taken by the Tribunal in different cases depending upon the relevant facts available before it cannot lead to the formation of a substantial question of law in any particular case to determine the aspects of determination of ' Arm's Length Price ' as is sought to be raised before us. Need for giving Primacy to the Tribunal in the area of fact finding : 46. Undoubtedly, the Income Tax Tribunal is the final and highest fact finding body under the Act. It is manned by Expert Members (Judicial Members are selected from District Judges or Advocates and Accountant Members selected ..... X X X X Extracts X X X X X X X X Extracts X X X X
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