Transfer pricing dispute turned academic as no substantial question of law arose from unchallenged factual findings.

Revenue's Section 260A appeal failed to raise any substantial question of law because the Tribunal's factual findings stood unchallenged: the transaction between the domestic entities was independently negotiated on its own terms, and the assessee's arm's length price determination was found reasonable. The Transfer Pricing Officer's method was not one of the methods prescribed under Section 92C, and the Tribunal's refusal to remand for recomputation on a different basis was also not disputed. Even if Revenue's reading of Section 92B were accepted, the issue would remain academic. The appeal was therefore not entertained and was dismissed, leaving the legal questions open for an appropriate case.

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Issues: Whether the Revenue's appeal under Section 260A of the Income-tax Act, 1961 raised any substantial question of law on the characterisation of the transaction under Section 92B and on the determination of arm's length price under Section 92C.

Analysis: The Revenue did not dispute the Tribunal's factual finding that the transaction between the two domestic entities was independently negotiated on its own terms and conditions, notwithstanding any prior global agreement between their holding companies. The Revenue also did not challenge the Tribunal's finding that the assessee's arm's length price determination was reasonable. Further, the method adopted by the Transfer Pricing Officer to determine arm's length price was not one of the methods prescribed under Section 92C of the Income-tax Act, 1961, and the Tribunal's refusal to remand the matter for fresh computation on a different basis was also not assailed. In these circumstances, even if the Revenue's interpretation of Section 92B were accepted, the dispute would remain academic and no substantial question of law arose for consideration.

Conclusion: The appeal was not entertained and was dismissed, leaving the legal questions open for an appropriate case.

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