TaxTMI 
TaxTMI 
2018 (7) TMI 482
X X X X Extracts X X X X
X X X X Extracts X X X X
....tax Officer) for A.Y.2008-2009. 2. The proposed substantial questions of law framed in the Memorandum of appeal by the Appellants-Revenue are quoted below for ready reference:- "1) Whether the ITAT is right in fact and in law in seeking exact comparability while searching for comparable companies of the respondent under TNMM method whereas requirement of law and international jurisprudence require seeking similar comparable companies? 2) Whether while seeking the exact comparability as mentioned in the above the ITAT is right in imposing the condition beyond law where the requirement of law is to acknowledge only those differences that are likely to materially affect the margin? 3) Whether, the ITAT is right in not acknow....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the Tribunal that the said company is primarily engaged in the development of software products and particularly in customized software solution like DXchange, Carma etc. products. The Tribunal after considering the functions and the information available on the website of the company has concluded at para-7.6.1 and 7.6.2 as under; Following the order of the co-ordinate bench of this Tribunal in case of 3DPLM Software Solutions Ltd (Supra) we direct the AO/TPO to exclude this company from the list of comparables. 8. Bodhtree Ltd: The learned AR of the assessee submitted that this company is in the business of software products and engaged in providing open and end to end as well as software consultancy and design, development and sof....
X X X X Extracts X X X X
X X X X Extracts X X X X
....O/DRP and this company was found to be a good comparable of the assessee. 9.2 We have considered the rival submissions and the material on record. At the outset, we note that the functionally comparability of this company has been examined by the co-ordinate bench of this Tribunal in case of 3DPLM Software Solutions Ltd (Supra), in para-9.4.1 & 9.4.2 as under; Following the decision of the co-rdinate bench of this Tribunal(Supra), we direct the TPO/AO to exclude this company from the list of comparables." 18. Softsol India Ltd: 18.3 Since the functional comparability has not been examined by the Tribunal in the case of 3DPLM Software Solutions Ltd., (Supra) and this company was directed to be excluded only on the ground of related p....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... functional comparability as well as the applicability of RPT filter is required to be properly examined at the level of TPO. Accordingly, we set aside the functional comparability and application of the RPT filter to the record of the TPO. Needless to say the assessee be given an appropriate 18.4 We make it clear that the RPT filter if any is applied in this case, then, the same would be applicable in all the comparable companies to be considered for the purpose of determining the ALP." 20. Lucid Software and Mindtree: 20.1 Thus, it is clear from the examination of the fact that this company was found to be functionally not comparable with the software development service provider company. Accordin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....an 321/17/taxman.com 100/349 ITR 98. The issue before the Karnataka High Court was whether the Tribunal was correct in holding that while computing relief under Section 10A of the IT Act, the amount of communication expenses should be excluded from the total turnover if the same are reduced from the export turnover? While giving the answer to the issue, the High Court, inter-alia, held that when a particular word is not defined by the legislature and an ordinary meaning is to be attributed to it, the said ordinary meaning is to be in conformity with the context in which it is used. Hence, what is excluded from 'export turnover' must also be excluded from 'total turnover', since one of the components of 'total turnover' is export turnover. A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....um 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 could have embarked upon such exercise of framing and answering such substantial question of law. On the ....