2018 (7) TMI 485

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....The proposed substantial question of law framed by the Revenue in the Memorandum of Appeal is as under: "Whether on the facts and in the circumstances of the case, the Tribunal is right in applying first and second proviso of Section 92C of the Act and allowing +/- 5% range in the case where there is only one reference rate of RBI as a benchmarking rate for determining Arms' Length Price and Tribunal cannot go into issue as to how RBI decides a reference rate of price of a currency which was not an issue before Tribunal?" 3. The learned Tribunal, after discussing the rival contentions of both the Appellants-Revenue and Respondent-Assessee, has returned a finding as under: "05. We have perused the orders and heard the ri....

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....e Bank periodically reviews the procedure for selecting the banks and the methodology of polling so as to ensure that the reference rate is a true reflection of the market activity. G.Raghuraj Deputy General Manger Press Release : 2008-2009/163" It is clear from the above that the RBI rates of foreign exchange were also based on averaging. Therefore in our opinion, the principle evolving out of the decision of coordinate bench of Mumbai in Development Bank of Singapore (supra) will apply here as well. Assessee was therefore well justified in claiming the benefit available to it under proviso to section 92C(3) of the Act. DRP, in our opinion, was justified in holding that assessee's prices were within +/- 5% range of ....

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.... 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 cases where the Tribunal giving its own reasons and findings has found certain comparables to be good comparables to arrive at an 'Arm's Length ....