Case Note & Summary
The Revenue filed an appeal under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal (ITAT) dated 29.11.2016 in IT(TP)A No.1561/Bang/2014 for Assessment Year 2009-10. The Tribunal had deleted the transfer pricing adjustment made by the Assessing Officer, following its own order for the preceding assessment year (2008-09) in the case of the same assessee, M/s Acer India Pvt. Ltd. The Revenue contended that the Tribunal erred in doing so and raised purported substantial questions of law. The High Court, after hearing the counsel for both sides, found that the Tribunal's order was consistent with its earlier decision and that the Revenue had not demonstrated any perversity or new material warranting a different conclusion. The Court held that no substantial question of law arises from the Tribunal's order and dismissed the appeal.
Headnote
A) Income Tax - Transfer Pricing - Substantial Question of Law - Section 260-A of the Income Tax Act, 1961 - The Revenue appealed against the Tribunal's order deleting the transfer pricing adjustment for A.Y. 2009-10, relying on its earlier order for A.Y. 2008-09. The High Court held that no substantial question of law arises as the Tribunal's order was consistent with its earlier decision and the Revenue failed to show any perversity or new material. The appeal was dismissed. (Paras 1-3)
Issue of Consideration
Whether the Income Tax Appellate Tribunal was justified in deleting the transfer pricing adjustment made by the Assessing Officer for Assessment Year 2009-10, following its own order for the preceding assessment year, and whether any substantial question of law arises from the Tribunal's order.
Final Decision
The High Court dismissed the appeal, holding that no substantial question of law arises from the Tribunal's order.
Law Points
- Substantial question of law
- Transfer pricing adjustment
- Consistency in assessment
- Section 260-A Income Tax Act
- 1961
Case Details
2018 LawText (KAR) (06) 6
Dr. Vineet Kothari, S. Sujatha
K.V. Aravind (for Appellants), Ankur Pai (for Respondent)
The Pr. Commissioner of Income-tax CIT (A) & The Deputy Commissioner of Income Tax, Circle 1(1)(1)
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Nature of Litigation
Income Tax Appeal under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal.
Remedy Sought
The Revenue sought to formulate substantial questions of law and set aside the Tribunal's order, confirming the order of the Appellate Commissioner and the Deputy Commissioner of Income Tax.
Filing Reason
The Revenue was aggrieved by the Tribunal's order deleting the transfer pricing adjustment for A.Y. 2009-10, following its own order for the preceding assessment year.
Previous Decisions
The Income Tax Appellate Tribunal had passed an order dated 29.11.2016 in IT(TP)A No.1561/Bang/2014 for A.Y. 2009-10, following its earlier order for A.Y. 2008-09.
Issues
Whether the Tribunal was justified in deleting the transfer pricing adjustment by following its own order for the preceding assessment year.
Whether any substantial question of law arises from the Tribunal's order.
Submissions/Arguments
The Revenue argued that the Tribunal erred in deleting the transfer pricing adjustment and that substantial questions of law arise.
The Assessee contended that the Tribunal's order was consistent and no substantial question of law arises.
Ratio Decidendi
The Tribunal's order deleting the transfer pricing adjustment was consistent with its earlier order for the preceding assessment year, and the Revenue failed to show any perversity or new material. Therefore, no substantial question of law arises under Section 260-A of the Income Tax Act, 1961.
Judgment Excerpts
The Revenue has filed this appeal u/s 260-A of the Income Tax Act, 1961 ['Act' for short] raising purported substantial questions of law arising from the order of the Income Tax Appellate Tribunal ['Tribunal' for short] dated 29.11.2016 in IT [TP] A.No. 1561/Bang/2014 for A.Y. 2009-10.
Learned Tribunal following its own order for the preceding assessment year in the case of the same assessee, deleted the transfer pricing adjustment made by the Assessing Officer.
Procedural History
The Assessing Officer made a transfer pricing adjustment for A.Y. 2009-10. The assessee appealed to the Commissioner of Income Tax (Appeals), who confirmed the adjustment. The assessee then appealed to the Income Tax Appellate Tribunal, which deleted the adjustment following its own order for A.Y. 2008-09. The Revenue filed an appeal under Section 260-A before the High Court of Karnataka.
Acts & Sections
- Income Tax Act, 1961: 260-A
