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TMI Blog2018 (7) TMI 2215X X X X Extracts X X X X X X X X Extracts X X X X ..... ty paid by the assessee as an allowable expenditure u/s.37. See TATA YODOGAWA LTD. VERSUS COMMISSIONER OF INCOME-TAX [ 2010 (9) TMI 715 - JHARKHAND HIGH COURT] . TP Adjustment - comparable selection - HELD THAT:- This Court in a recent judgment in Softbrands India Pvt. Ltd [ 2018 (6) TMI 1327 - KARNATAKA HIGH COURT] 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 appellant, the appeal at the instance of an assessee or the Revenue under Section 260-A of the Act is not maintainable. - I.T.A. No. 56/2016 - - - Dated:- 31-7-2018 - THE HON'BLE DR. JUSTICE VINEET KOTHARI AND THE HON BLE MRS. JUSTICE S. SUJATHA For the Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant portion of which is quoted below for ready reference:- 18. Having regard to the rival contentions and the material on record, we find that the Hon ble Jharkhand High Court in the case of Tata Yadogawa Ltd. (cited supra) was considering the case of a company which has entered into a technical collaboration agreement with an Austrian company, ESW to acquire know-how for certain consideration in terms of which taxes, if any, on payment of consideration were also to be borne by the assessee therein. The assessee therein had applied for grant of permission u/s 195(2) to remit the said consideration without deduction of tax at source which was rejected by the AO and which travelled up to the Hon ble High Court. The Hon ble High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income Tax reported in (2011) 335 ITR 53, which is quoted below for ready reference:- 12. On the facts of this case the obligation of the assessee under the agreement with ESW extended not merely to remitting the amount of two million DM to ESW, but also extended to payment of taxes which would include the income-tax as well as the R D cess. It seems quite obvious that if the assessee had not paid the tax or the R D cess, and had merely made payment of the two million DM to ESW, the latter would not be obliged to part with the know-how in view of the terms of the collaboration agreement. Therefore, payment of these taxes are as integral part of the consideration as the payment of two million DM. In fact, the IT Department is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow for ready reference:- We find that Tribunal in the case of M/s. Airbus India Operations Pvt. Ltd., (cited supra) has considered the comparability of Bodhtree Consulting Ltd., with the assessee therein, and at para 15 and 16 of its order held as under: xxxxxxxxxx Respectfully following the decision of the Tribunal on similar set of facts, we direct the AO/TPO to exclude Bodhtree Consulting Ltd. from the final list of comparable companies . 8. However, this Court in a recent judgment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estions 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 be dismissed. 57. We make it clear that the same yardsticks and parameters will have to be applied, even if such appeals are filed by the Assessees, because, there may be cases where the Tribunal giving its own reasons and findings has found certain comparables 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 suffi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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