TaxTMI 
TaxTMI 
2021 (11) TMI 683
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....961 (the Act) on 14th April 2011 accepting the declared income. After scrunity assessment notice under Section 143(2) was issued on 19th September 2011, notice under Section 142(1) alongwith questionnaire was also issued to respondent on 20th December 2013 seeking further details. As the international transaction with Associate Enterprises (AE) entered into by respondent exceeded the threshold limit of Rs. 15 crores, a reference to the Transfer Pricing Officer (TPO) was made after the approval of CIT-8, Mumbai for computing the arms' length price of international transaction. In this case, the TPO made an upward adjustment of Rs. 19,55,13,736.73 on account of performance fees and investment advisory fees, vide order dated 30th January 20....
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....led rates for such activity has been mentioned by the TPO in the order ? (d) Whether the Ld. ITAT is right in not considering the uncontrolled rates for the PMS activity of the assessee which have been submitted by the assessee before it and stated to be having sanction of the Hon'ble High Court of Bombay ? (e) Whether the Ld. ITAT is right in relying on the APA signed by the assessee with CBDT for subsequent years when the same are clearly not applicable for the relevant year, ignoring the fact that the assessee had the option of including the relevant year for APA as Ivell and has not opted for the same ? (f) Whether the Ld ITAT is right in directing the inclusion of 3 comparables in the TNMM analysis relying so....
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....etween respondent and its AE. Therefore, the said 5 questions (a) to (e) cannot be entertained. 6. As regards second part, i.e., (f) and (g) are concerned, the finding of the ITAT is entirely one of fact and the revenue has failed to show as to how the finding arrived at by the ITAT is perverse in any manner. The revenue has also not been able to demonstrate that the analysis done by the ITAT while excluding the companies suggested by the revenue from the list of comparables, was in any manner contrary to the settled position in law. 7 The entire exercise of making transfer price adjustment on the basis of comparables is nothing but a matter of estimate of a broad and fair guesswork of the authorities based on factual relevant materia....
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....e that the assessee company would normally choose comparables, whose operating profit margins are less or only little more than the assessee, but the revenue would bring in comparables with higher profit margins. The TPO, may in the case of an assessee introduce and suggest comparables whose operating margins are higher than the assessee company so as to make transfer pricing adjustments in the declared income of the assessee, resulting in fetching of more revenue. From the aforesaid quoted paragraphs from the Tribunal's order, it is evident that, individual cases of such comparables have been juxtaposed with the functionality of the assessee considered, analyzed and discussed by the Tribunal in respect of comparables which were excluded by....
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.... manner contrary to the settled position in law. Thus, we see no reason to entertain this appeal. 6 However, before closing, we would like to record the fact that we find that the Revenue is regularly filing appeals from the orders of the Tribunal in respect of Transfer Pricing particularly with regard to exclusion and inclusion of certain companies as comparables to determine ALP of tested parties. These appeals are being filed in a ritualistic manner. This results in the orders of the Tribunal which are essentially findings of fact in respect of exclusion/inclusion of a comparable being challenged without pointing out in any manner perversity of finding or failure to adhere to the settled principles of law while determining compa....