Case Law Details
1. This appeal filed by the Revenue raises questions with regard to whether transfer pricing adjustment consequent to arriving at Arms Length Price(ALP) is required to be done only in respect of the international transactions or this adjustment is to be done in respect of all the business transactions of the assessee i.e. at the entity level.
2. On 12th April, 2016 and 18th April, 2016 this Appeal was on board and detailed orders were passed indicating that the Revenue has not been bringing to the notice of the Court orders of admission in its favour in the subsequent Appeals filed by it an identical questions. This has resulted in the subsequent appeals filed by the Revenue raising identical questions being dismissed at the stage of admission after having heard the parties at some length.
3. In the above view, it was felt that the Income Tax Department must have in place a system of keeping a record of questions of law which have been admitted or dismissed by this Court. This alone would enable a consistent stand being taken by the Revenue when a similar question arises before the same or different Bench of this Court.
4. In the above view, the Principal Chief Commissioner of Income Tax who is the head of all the Commissionerates at Mumbai was directed to file affidavit indicating the steps being taken to ensure that a consistent view is taken by the Department. The two Commissioner’s of Income Tax who had briefed counsel in the two appeals wherein identical questions were raised as in an earlier appeal and were dismissed as the Revenue had not pointed out to the Court that in an earlier appeal an identical question of law had been admitted were also directed to file affidavits. The two Commissioner of Income Tax have both filed affidavits dated 26th April, 2016 and 5th May, 2016. The Principal Chief Commissioner of Income Tax has now filed affidavit dated 5th May, 2016.
5. We find that the affidavit of the Principal Chief Commissioner of Income Tax merely indicates that the Department has decided to add a legal corner on its website where all questions of law which are admitted or dismissed by this Court will be entered sectionwise. However, no
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