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TMI Blog2018 (7) TMI 2062X X X X Extracts X X X X X X X X Extracts X X X X ..... , we are satisfied that such deduction shall be allowed from the total turnover in same proportion as well TP Adjustment - working capital adjustment - As per tribunal DRP correctly directed the A.O./TPO to work out the working capital adjustment as per the actual figure without putting any upper cap - HELD THAT:- The controversy involved herein is no more res integra in view of the decision of M/s.Softbrands India Pvt. Ltd. [2018 (6) TMI 1327 - KARNATAKA HIGH COURT] wherein it has been observed that unless the finding of the Tribunal is found ex facie perverse, the Appeal u/s. 260-A of the Act, is not maintainable. Present appeals filed by the Revenue do not give rise to any substantial question of law and the suggested substant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal is right in law in directing the Assessing Officer to re-calculate the deduction allowable to the assessee under section 10A of the Act by reducing the total turnover also by the same amount by which export turnover was reduced by the assessing officer in respect of foreign currency expenses incurred towards technical services rendered outside India, 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 in the facts and circumstances of the case, the Tribunal is right in law in excluding the comparables ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Division Bench of this Court in the case of M/s.Tata Elxsi Ltd., vs. Asst. Commissioner of Income Tax, decided on 20.10.2015since reported in (2015) 127 DTR 0327 (Kar), which has been affirmed by the Hon ble Supreme Court in the case of Commissioner of Income-tax, Central III vs. HCL Technologies Ltd., [2018] 93 Taxmann.com 33(SC). 6.The relevant portion of the judgment of the Hon ble Supreme Court in the case of HCL Technologies Ltd. (supra), is quoted below for ready reference:- 17. The similar nature of controversy, akin this case, arose before the Karnataka High Court in CIT v. Tata Elxsi Ltd. [2012] 204 Taxman 321/17/taxman.com 100/349 ITR 98. The issue before the Karnataka High Court was whether the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are satisfied that such deduction shall be allowed from the total turnover in same proportion as well . Regarding Substantial Question No.3: 7.The learned Tribunal, after discussing the rival contentions of both the Appellants-Revenue and Respondent-Assessee, has returned a finding as under: 5. We have heard the learned Departmental Representative as well as learned Authorised Representative and considered the relevant material on record. While determining the Arm s Length Price ( ALP ), the TPO in principle agreed to grant the working capital adjustment however the working capital adjustment was restricted to 1.71% which is the average cost of capital of the comparable companies selected by the TPO. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interpretation of provisions 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 260-A of the Act, the 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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