PR COMMISSIONER OF INCOME TAX - 6 vs. M/S STERLING COMMERCE

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ITA/304/2018HC KarnatakaKAHC01037423201829 March 2021Bench: ALOK ARADHE,M.G.S. KAMAL3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court granted the Revenue's request to argue the substantial question of law in a related appeal (ITA No.303/2018). With this liberty granted, the present appeal was disposed of.

What were the facts?

The Revenue filed an appeal before the High Court against an order of the Income Tax Appellate Tribunal (ITAT) concerning the Assessment Year 2009-10. The ITAT had directed the Assessing Officer (AO) and Transfer Pricing Officer (TPO) to exclude certain comparables based on functional dissimilarity.

What were the issues?

Whether the ITAT was correct in directing the exclusion of comparables due to functional dissimilarity, and if the High Court should consider this issue in the context of a related appeal.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF MARCH 2021 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE M.G.S. KAMAL I.T.A. NO.304 OF 2018 BETWEEN: 1. PR. COMMISSIONER OF INCOME TAX-6

BMTC COMPLEX, KORAMANGALA

BANGALORE. 2. THE DEPUTY COMMISSIONER OF INCOME TAX

CIRCLE - 12(3), BANGALORE. .... APPELLANTS (BY MR. SANMATHI E.I. ADV.,) AND: M/S. STERLING COMMERCE SOLUTIONS (INDIA ) PVT LTD NO 4/1, IBC KNOWLEDGE PARK TOWER 'D' LEVEL - 1 BANNERGATTA ROAD BENGALURU - 560029 PAN: AAACY1364L. ... RESPONDENT (RESPONDENT SERVED UNREPRESENTED) - - - THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 31.10.2017 PASSED IN IT(TP)A NO.186/BANG/2014 FOR THE ASSESSMENT YEAR 2009-10, PRAYING TO:

2 (i) DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT. (ii) SET ASIDE THE APPELLATE ORDER DATED 31.10.2017 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, 'C' BENCH, BENGALURU, IN APPEAL PROCEEDINGS NO.IT(TP)A NO.186/BANG/2014 FOR ASSESSMENT YEAR 2009-10 AS SOUGHT FOR IN THIS APPEAL AND TO GRANT SUCH OTHER RELIEF AS DEEMED FIT, IN THE INTEREST OF JUSTICE. THIS I.T.A. COMING ON FOR HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING: JUDGMENT Mr.E.I.Sanmathi, learned counsel for the revenue. None for the respondent. This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’, for short) has been filed by the revenue. The subject matter of the appeal pertains to the Assessment Year 2009-10. The appeal was admitted by a Bench of this Court vide order dated 01.04.2019 on the following substantial question of law: "Whether on the facts and circumstances of the case, the Tribunal is right in law in directing AO/TPO to exclude certain comparables based on functional dissimilarity by following its earlier order?"

3 2. When the matter was taken up today, learned counsel for the revenue seeks leave of this Court to urge the aforesaid substantial question of law in ITA No.303/2018. With the aforesaid liberty, the appeal is disposed of. Sd/- JUDGE Sd/- JUDGE RV

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