High Court dismissed the Department’s appeals holding they were not substantial questions of law within the scope of section 260A of the Income-tax Act, 1961. On SLP the Court held that since the decision in PCIT v. Softbrands India (P) Ltd (2018) 406 ITR 513 (Karn))(HC) was consideration before the court in Sap Labs India Pvt. Ltd. v. ITO (2023) 454 ITR 121 (SC) the judgment of the High Court in so far as it related to transfer pricing, was to be set aside and the matter remitted to the High Court to decide the appeal afresh in accordance with law and on its own merits and in the light of the observations made by the court.(AY. 2009-10)
PCIT v. Subex Ltd. (2023)454 ITR 519/ 293 Taxman 679 (SC) Editorial: PCIT v. Subex Ltd(Karn)(HC) (ITA No.492 of 2016 dt 1-10-2021)
S. 260A : Appeal-High Court-Transfer pricing-Arm’s length price-International transactions-Determination-Court can consider whether relevant guidelines under Act and Rules taken into consideration–Comparability of two companies-Selection of filters judiciously done and on basis of relevant material and evidence on record-Matter remanded to the High Court to take a fresh decision.[S. 92, 92A to 92CA, 92D, 92E and 92F, R.10B to 10E, Art. 136]