TaxTMI 
TaxTMI 
2018 (8) TMI 2174
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....', Bangalore, dated 23.11.2016 passed in IT(TP)A No. 61/Bang/2014 (M/s. Sami Labs vs. Dy. Commissioner of Income Tax ) for A.Y. 2009-10. 2. This appeal has been admitted on 17.01.2018 to consider the following 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, the Tribunal was right in law in directing the assessing authority/transfer pricing officer to re-work the operating margins of the assessee by considering the forex gain on export turnover on sales as operating margin by following its earlier order in case of assessee itself even when said order has not reached finality and even whe....
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....5% by following the decision in the case of Four Soft Pvt. Ltd V/s DCIT even when said decision has not reached finality and without appreciating that the corporate guarantee is a service provided by the assessee-company to its Associated Enterprise (for short AE), the international subsidy, for capital requirement of the latter and by getting the guarantee from the assessee, the AE not only in a position to avail institutional finance, but also relaxation in interest rate chargeable position to avail credit rating of the assessee?." 3. The learned Tribunal, after discussing the rival contentions of both the Appellants-Revenue and the Respondent-Assessee, has given the following findings:- Regarding substantial question of law No.1:- ....
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.... sale to the AE in comparison to the comparables making sales to the third party. The ld. AR of the assessee has submitted that the assessee has furnished all the requisite details. Risk adjustment is one of the component to be taken into account for FAR analysis. Therefore the TPO/A.O./A.O is directed to consider the claim of risk adjustment on the basis of the details to be furnished by the assessee". Regarding substantial question of law No.4:- "20. We have heard the learned A.R. as well as learned D.R. and considered the relevant material on record. The assessee has furnished corporate guarantee of Rs. 40,50,89,250 to bankers on behalf of the AEs. Since the assessee has not charged any fees or commission for providing the co....
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....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 other hand, the appeals of the present tenor as to whether the comparables have been....