2018 (6) TMI 1783

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..... The proposed substantial questions of law framed in the Memorandum of appeal by the Appellants-Revenue are quoted below for ready reference:- "1. Whether on the facts and in the circumstances of the case, and in law, the Tribunal was justified by not acknowledging its own orders where the Tribunal has held in stretching RPT% from 15-20% in case of Katera Software India Pvt Ltd? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that RPT filters should be 15% and not 25%, taken by the TPO? 3. Whether on the facts and in the circumstances of the case, the Tribunal erred in not acknowledging its own decision, where it has held that Bodhtree Consulting Limited to be a val....

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....ave to be taken into account to bench marked international transactions. However, 0% RPT of the comparable price is an impossible situation and therefore a reasonable tolerance range from revenue from RPT can be considered for selecting uncontrolled comparables. There is no  dispute that there cannot be a single criteria/parameter to be applied as a general rule in all the cases. The tolerance range varies from case to case and depending upon the availability of comparables for a particular case. Thus if the comparables of an international transactions are easily available in sufficient number then this tolerance range of RPT should be restricted to minimum. Though there is no specified range in the provisions of Act or Rules, however,....

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.... "Considering the functional details as reported in the Annual Report and following the earlier orders of this Tribunal in the case of Kodiak (supra), we direct the A.O/TPO to exclude these five companies namely Bhodtree Consulting Ltd., Exensys Software Solutions Ltd., Sankya Infotech Ltd., Thirdware Solution Ltd. & Tata Elxsi Ltd. from the set of comparables." 4. This Court in ITA No.536/2015 C/w ITA No.537/2015 delivered   on 25.06.2018 (Prl. Commissioner of  Income  Tax  &  Anr.  Vs. M/s. Softbrands India Pvt. Ltd.,) has held that in these type of cases, unless an ex-facie perversity in the findings of the learned Income Tax Appellate Tribunal is established by the appellant, the appeal at the in....