TaxTMI 
TaxTMI 
2018 (7) TMI 380
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....2016 (Business Process Outsourcing (India) Pvt. Ltd., vs. The Asst. Commissioner of Income Tax) for A.Y.2010-11. 2. The proposed substantial questions of law and additional substantial question of law framed in the Memorandum of appeal by the Appellants-Revenue are quoted below for ready reference:- Proposed substantial questions of law:- "(1) Whether in the facts and circumstances of the case, the Tribunal is right in law in excluding the comparables, namely, M/s. Accentia Technologies Ltd., M/s. Fortune Infotech Ltd., on the ground of functional dissimilarity by following its decisions even though the said decisions have not reached finality....
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....h regard to various issues raised before it with regard to 'Transfer Pricing' and 'Transfer Pricing Adjustments' made by the concerned authorities below. We consider it appropriate to quote from the order of Tribunal rejecting the Application seeking a review before Tribunal as hereunder:- "Regarding substantial question of law No.1 - M/s. Accentia Technologies Ltd. 5. Goodwill appearing in balance sheet of Accentia from the FY-2007-08 further states that it has paid premium to purchase all the companies and annual report for FY 2009-10 says such goodwill as specified in the scheme of amalgamation has been incorporated in the books of the accounts of the company and same will be amortized over the period of 10 yea....
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....vant data for the financial year can be deduced from the information available from their annual report, then, there can be objection to the inclusion of these companies in the list of comparables with the adjusted data for the relevant financial year itself. Even in the case of Mekinsey Knowledge Centre India Pvt. Ltd. (ITA 217/2014), the High Court of Delhi held that if from the available data on record, the results for financial year can reasonably be extrapolated then the comparable cannot be excluded solely on the ground that the comparables have different financial year endings. 18. In view of the above, it is respectfully submitted that R Systems International Ltd. rejected by the Ld.TPO solely on the ground that data for th....
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....eld as non operating in nature". Regarding Addl. substantial question of law - 32. With respect to Ground No.7, the AO/DRP had considered provision for bad and doubtful debts as non operating nature. In the case of Techbooks International Pvt. Ltd., vs. DCIT (ITA No.240/Del/2015). The Hon'ble ITAT in its judgment placed reliance upon considering provision of bad debts as operating in nature. In this regard, relevant extract of said judgment is provided below; 33. In light of the above, provision for bad and doubtful debts should be treated as operating expenses as they are closely linked with the business operations of the assessee". 4. This Court in ITA No.536/2015 c/w ITA No.537/2015 &n....
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.... as to whether the comparables have been rightly picked up or not, Filters for arriving at the correct list of comparables have been rightly applied or not, do not in our considered opinion, give rise to any substantial question of law. 56. We are therefore of the considered opinion that the present appeals filed by the Revenue do not give rise to any substantial question of law and the suggested substantial questions of law do not meet the requirements of Section 260-A of the Act and thus the appeals filed by the Revenue are found to be devoid of merit and the same are liable to be dismissed. 57. We make it clear that the same yardsticks and parameters will have to be applied, even if such appeals are filed by the Assesse....