2026 (10) TMI 61

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....e Income Tax Appellate Tribunal, Bengaluru (for short ITAT) in IT(TP)A No.184/Bang/2017 (Annexure-D) for the assessment year 2012-2013 was admitted by this Court on 15.04.2021 to examine the following substantial questions of law: (1) "Whether, on the facts and in the circumstances of the case and law, the Tribunal is right in directing Transfer Pricing Officer to exclude even when the Transfer Pricing Officer had chosen comparables' in accordance with Rule 10B and after satisfying required tests prescribed under the Act? (2) Whether, on the facts and in the circumstances of the case and law, the Tribunal is right in directing Transfer Pricing Officer to exclude Persistent Systems Ltd and Larsen and Tourbo Ltd Persistent S....

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....n rests upon the taxpayer, while the Transfer Pricing Officer can interfere with the taxpayer's determination only upon satisfaction of the conditions stipulated under Section 92C(3) of the Act. (iii) The selection or exclusion of comparables is essentially a factual and data-driven exercise, and the TPO cannot reject the taxpayer's comparables merely to substitute them with a standard departmental set. Such determination must strictly conform to the requirements of Rule 10B of the Rules. (iv) The Tribunal's adoption of an upper turnover filter of Rs.200 crores is rational and legally sustainable, as turnover, brand value, economies of scale, bargaining power and ownership of intangibles materially influence co....