2018 (8) TMI 2023

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....18, relating to the Assessment Year 2010-11. 2.The substantial question of law framed by the Revenue in the Memorandum of Appeal is as under: "Whether on the facts and circumstances of the case and in law, the order passed by the Tribunal can be considered as perverse in nature since Tribunal has held that RPM is the most appropriate method in the taxpayers' case, when the taxpayer has performed more functions than that of a routine trader as evident from the huge loss reported at the entity level and ignoring the evidence brought in by the Transfer Pricing Officer?" 3.The learned Tribunal, after discussing the rival contentions of both the Appellants-Revenue and Respondent-Assessee, has returned the findings as under: Reg....

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.... like market risk, credit risk, etc., are undertaken by any distributor for the sale of the products. The Tribunal further held that what is important to see is whether there is any value addition or not on the cost purchased for resale. If there is no value addition to the finished goods purchased from the AE and sold in the market as it is, then gross profit margin earned on such transactions become a determining factor to analyse the gross compensation after the cost of sales. Accordingly,the Tribunal held that the RPM is the most appropriate method 20. Turning to the facts of the case, we find that undisputedly, assessee is a distributor of AO Smith China which is involved in the manufacture of water heaters and sells the water....

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.... 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 other hand, the appeals of the present tenor 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 toany substantial question of law. 56. We are therefore of the considered o....