2018 (7) TMI 476

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....ated 11.03.2016, relating to the Assessment Year 2004-05. 2. The proposed substantial questions of law framed by the Revenue in the Memorandum of Appeal is as under: "[1]   Whether   on   the   facts   and   in   the circumstances of the case, the Tribunal erred in holding that few companies are functionally different from assessee company, when it satisfies all the qualitative and quantitative filters applied by the TPO and the Tribunal has used a narrower functionality filter that the TPO, but has not tested other comparables against the narrower functionality filter applied by it?" [2] Whether on the facts and in the circumstances of the case, the ....

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.... its TP study. In fact, assessee's margin arrived at in the TP study as recorded by the CIT[A] in Table 3 page 6 of the order was at 51%, whereas the TPO as considered the unadjusted profit margin at 45.74%. Whether Tricom India Ltd., also is in ITES services which could be separated or segmented, like in assessee's case also could not be verified by us. In view of this, we are of the opinion that comparability of the above company is required to be re-examined by the TPO, keeping in mind the objections raised by assessee as accepted by ITAT in the case of other company 24/7 Customer.com and also keeping in mind the assessee's business profile of software development services, ITES and their interlinking. In view of this, we set aside the o....

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....les 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 Assessees, because, there may be c....