Court dismisses Revenue's appeal on comparables exclusion in international transaction, upholding ITAT decision.

The High Court dismissed the Revenue's appeal challenging the exclusion of two companies, Cosmic Global Limited (CGL) and Accentia Technologies Limited (ATL), from the list of comparables for determining the arm's length price in an international transaction. The Court held that the ITAT's decision did not raise any substantial question of law warranting consideration, leading to the appeal's dismissal.

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Issues: Revenue's appeal against exclusion of two companies from comparables list for determining arm's length price in an international transaction.

The High Court heard an appeal by the Revenue under Section 260A of the Income Tax Act, 1961, challenging the order of the Income Tax Appellate Tribunal (ITAT) dated 24th April 2015 for the Assessment Year 2009-10. The main grievance of the Revenue was the exclusion of two companies, Cosmic Global Limited (CGL) and Accentia Technologies Limited (ATL), from the list of comparables for determining the arm's length price (ALP) of an international transaction involving the Respondent Assessee. The ITAT had excluded CGL due to outsourcing major activities and ATL due to a merger with another entity, making it incomparable. The Revenue argued that these companies were included in the Assessee's own list of selected entities, and the demand for their exclusion was made only before the ITAT. However, the Court held that the ITAT's decision to exclude the entities did not raise any substantial question of law warranting the Court's consideration, leading to the dismissal of the appeal.

In summary, the High Court dismissed the Revenue's appeal against the exclusion of two companies, CGL and ATL, from the list of comparables for determining the arm's length price in an international transaction, as the Court found no substantial question of law arising from the ITAT's decision.

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