Case Note & Summary
The assessee, M/s. Indigra Exports Pvt. Ltd., filed an appeal under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal (ITAT) dated 10/11/2015 in IT(TP)A.No.309/Bang/2015 for Assessment Year 2010-11. The ITAT had confirmed the transfer pricing adjustment made by the Revenue in respect of software development services provided by the assessee to its associated enterprise. The assessee contended that the adjustment was not in accordance with the arm's length price and raised purported substantial questions of law. The High Court, after hearing both sides, found that the findings of the ITAT were based on proper appreciation of evidence and were not perverse. The court held that no substantial question of law arose for consideration and dismissed the appeal.
Headnote
A) Income Tax - Transfer Pricing - Arm's Length Price - Section 260-A, Income Tax Act, 1961 - The assessee challenged the ITAT order confirming the transfer pricing adjustment for software development services. The High Court held that no substantial question of law arose as the findings of the Tribunal were based on evidence and not perverse. The appeal was dismissed. (Paras 1-3)
Issue of Consideration
Whether the Income Tax Appellate Tribunal's order confirming the transfer pricing adjustment for software development services gave rise to any substantial question of law under Section 260-A of the Income Tax Act, 1961.
Final Decision
The High Court dismissed the appeal, holding that no substantial question of law arose from the ITAT order.
Law Points
- Transfer pricing
- Arm's length price
- Substantial question of law
- Section 260-A Income Tax Act
- 1961
- ITAT findings
- No perversity
Case Details
2018 LawText (KAR) (06) 33
Dr. Vineet Kothari, Mrs. S. Sujatha
Mr. Chythanya K.K. (for Appellant), Mr. K.V. Aravind (for Respondent)
M/s. Indigra Exports Pvt. Ltd.
Deputy Commissioner of Income-tax, Circle – 3 (1) (1), BMTC Building, 80 Feet Road, 6th Block, Koramangala, Bengaluru-560 095.
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Appeal under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal confirming transfer pricing adjustment.
Remedy Sought
The appellant sought to set aside the ITAT order and formulate substantial questions of law.
Filing Reason
The assessee was aggrieved by the ITAT order confirming the transfer pricing adjustment for software development services.
Previous Decisions
The ITAT had passed an order dated 10/11/2015 in IT(TP)A.No.309/Bang/2015 for AY 2010-11, which was challenged.
Issues
Whether the ITAT order gave rise to any substantial question of law under Section 260-A of the Income Tax Act, 1961.
Submissions/Arguments
The appellant argued that the transfer pricing adjustment was not in accordance with the arm's length price and raised substantial questions of law. The respondent supported the ITAT order.
Ratio Decidendi
The findings of the ITAT were based on evidence and were not perverse; hence, no substantial question of law arose under Section 260-A of the Income Tax Act, 1961.
Judgment Excerpts
The findings of the learned Tribunal with regard to the transfer pricing adjustment were based on evidence and were not perverse.
Procedural History
The assessee filed an appeal under Section 260-A of the Income Tax Act, 1961 against the ITAT order dated 10/11/2015 in IT(TP)A.No.309/Bang/2015 for AY 2010-11. The High Court heard the appeal and dismissed it on 26-06-2018.
Acts & Sections
- Income Tax Act, 1961: 260-A
