TaxTMI 
TaxTMI 
2026 (9) TMI 785
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....are preferred by the Revenue calling in question the common order dated 29.09.2022 passed by the Income Tax Appellate Tribunal, 'B' Bench, Bengaluru (for short, 'the Tribunal') in ITA Nos.2611/Bang/2018 and 2732/Bang/2018 relating to the assessment year 2013-14. 2. Since both the appeals arise out of the same order of the Tribunal and concern the same assessee and assessment year, they are heard together and are being disposed of by this common judgment. 3. Brief facts leading to the filing of these appeals are as under: The assessee sells its finished products to third parties in India and also resells chemicals and formulations imported from FMC Corporation, USA. In addition, it imports raw materials (Lithiu....
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....e appeal of the Revenue. The Revenue is in appeal before this Court challenging the said order. 6. In ITA No.580/2023, the Revenue has proposed the following substantial questions of law: 1. "Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in nature in law in directing the Transfer Pricing Officer to exclude comparable namely to exclude comparables' namely, Rallis India Ltd as on ground of functional dissimilarity without appreciating that the selection of comparables in a case depends on transfer pricing on assessee's specific FAR analysis and specific facts brought out on record by the TPO and as per Rule 10B of I.T. Rules?" 2. "Whether on the facts and i....
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.... to restrict transfer pricing adjustment to international transactions alone contrary to provisions of the Act"? 8. Per contra, the learned counsel for the respondent-assessee supported the order of the Tribunal and submitted that the findings recorded by the Tribunal are pure findings of fact based on appreciation of material on record and do not give rise to any substantial question of law. 9. We have heard the learned counsel for the Revenue and the learned counsel for the respondent-assessee and have carefully perused the orders of the authorities below and the material placed on record. Re: ITA No.580/2023 10. The first issue concerns the exclusion of Rallis India Ltd. as a comparable. The Tribunal has noticed that the asse....
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....ial on record, cannot be characterised as perverse merely because another view may also be possible. 13. The jurisdiction under Section 260-A is not intended to permit this Court to undertake a fresh comparability analysis or re-appreciate the material which has already been considered by the specialised appellate Tribunal. Unless the finding is shown to be perverse, based on no evidence, or contrary to the statutory scheme, interference is not warranted. The Revenue has not demonstrated any such infirmity. 14. The next issue is the working-capital adjustment. The Tribunal noticed that the assessee had not initially furnished sufficient details to demonstrate the precise impact of differences in working capital upon the margins. Never....
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....: ITA No.575/2023 18. The first issue in this appeal relates to the foreign-exchange revenue filter. The assessee had contended that a filter of 25 per cent was appropriate having regard to its predominantly domestic operations, whereas the CIT(A) had proceeded on the basis of a 40 per cent filter. The Tribunal found no proper basis for adopting the 40 per cent figure and, instead of deciding the matter conclusively in favour of either side, remanded the issue to the Assessing Officer/Transfer Pricing Officer to adopt a consistent approach in selecting the range of the filter, after affording due opportunity to the assessee. 19. The Revenue contends that the assessee and the Transfer Pricing Officer had not applied such a filter in th....
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....he principle that the transfer-pricing provisions are concerned with determining the arm's-length price of international transactions with Associated Enterprises. The Tribunal has applied that principle to the facts before it and has issued a consequential direction in respect of the international transactions forming the subject matter of the transfer-pricing exercise. 24. The Revenue has not demonstrated that the Tribunal's conclusion suffers from perversity or that it has proceeded on an interpretation of the Act which is patently unsustainable. A mere disagreement with the conclusion reached by the Tribunal, particularly when the conclusion is founded upon the material and the legal principles considered by it, is insufficien....