2018 (7) TMI 478

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....essment Year 2007-08. 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 was justified in law in directing the TPO to exclude 14 comparable out of 26 comparable selected by the TPO for calculating the transfer pricing adjustment in software development services segment of the company by relying upon its own decision in case of M/s Marvel India Pvt. Ltd., which has not yet reached  finality  and  even when the TPO has chosen proper comparable considering all the aspects? 2. Whether on the facts and in the circumstances of the case, the Tribunal was justified in law directing ....

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....roduce para-5 to 7 of this Tribunal order as under: From the above paras reproduced from the Tribunal order rendered in the case  of  M/s Marvel India Pvt. Ltd. (supra), it is seen that in that case, the company  was  engaged in software services and it was held by the Tribunal in that case that following 14 comparables should be excluded and for one comparable i.e., M/s Megasoft Ltd. it was directed that this company should be considered for inclusion as per its segmental results only. Theses 14 companies for which exclusion was directed in that case which are as follows: After exclusion of these 14 comparables companies and after considering the correct operative margin of M/s Megasoft Ltd. (Seg.), ne....

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...."Conclusion: 55. A substantial quantum of international trade and transactions depends upon the fair and quick judicial dispensation  in such cases. Had it been a  case  of substantial question of interpretation of provisions of Double Taxation Avoidance Treaties (DTAA), interpretation of provisions of the Income Tax Act or Overriding Effect of the Treaties over the Domestic Legislations or the questions like Treaty Shopping, Base Erosion and Profit Shifting (BEPS), Transfer of Shares in Tax Havens (like in the case of Vodafone etc.), if based on relevant facts, such substantial  questions  of  law   could   be raised before the High Court under Section 260-A of the Act, the Courts ....