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of <h1>Court allows delayed appeal, examines against ITAT order on international transactions benchmarking. Fresh comparables search emphasized.</h1> <h3>Pr. Commissioner of Income Tax- 4 Versus M/s. GAP International Sourcing (India) Pvt. Ltd.</h3> The Court condoned a delay of 148 days in re-filing the appeal, examining it on merits against an ITAT order directing benchmarking of international ... TP adjustment - Comparable selection - functional similarity between the Assessee and Li and Fung - HELD THAT:- The lack of functional similarity between Li & Fung India and the Assessee on various parameters. The ITAT upheld the ‘net profit/total cost remuneration model’ adopted by the Assessee in determining the ALP of its international transactions. The Court notes that the ITAT has consistently followed its orders for AYs 2006-2007 and 2007-2008 which was affirmed by this Court. Accordingly the impugned order calls for no interference. No substantial question of law arises for determination by this Court. Issues:1. Condonation of delay in re-filing the appeal.2. Examination of the appeal on merits against an order by the Income Tax Appellate Tribunal (ITAT).3. Benchmarking of international transactions by the Transfer Pricing Officer (TPO).4. Functional aspects and comparables in determining the Arm's Length Price (ALP) of international transactions.5. Consistency in following previous orders by the ITAT.Condonation of Delay:The Court condoned the delay of 148 days in re-filing the appeal after perusing the application and considering the reasons provided. The delay was deemed condoned, and the application was disposed of accordingly.Examination of Appeal on Merits:The Court examined the appeal by the Revenue against an order by the ITAT, directing the Transfer Pricing Officer (TPO) to benchmark international transactions afresh. Despite an unsatisfactory explanation, the Court examined the appeal on merits.Benchmarking of International Transactions:The ITAT had restored the matter to the TPO to benchmark the international transaction afresh, emphasizing the need for a fresh search for comparables and providing the Assessee with an opportunity to be heard.Functional Aspects and Comparables for ALP:The Court considered the functional aspects of the Assessee, highlighting limited functions and activities, lack of authority to deviate from parent company policies, and low risk procurement services. The ITAT upheld the net profit/total cost remuneration model for determining the ALP, noting the lack of functional similarity with previous cases.Consistency in Following Previous Orders:The ITAT's consistency in following its orders for previous assessment years, affirmed by the Court, led to the conclusion that no substantial question of law arose for determination in the current appeal. The Court dismissed the appeal, citing no interference and no costs awarded.This detailed analysis of the judgment covers the issues involved comprehensively, highlighting the key legal aspects and decisions made by the Court.
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