SPL Labs India Pvt ltd Vs ITO,Circle 6 Banglore(Supreme Court)
Date-19th April, 2023
Sub-whether in every case where tribunal determines Arms’ length Price (ALP), the same shall attain finality and high court is precluded from considering the determination of ALP once determined by tribunal , in terms of Section 260A of Income-tax Act,1961

The Supreme Court in this case was considering 100s of cross SLPs both of assessee and department which particularly arose out of decision of Karnataka High court where earlier it was held by the Ld Court that the findings of Tribunal re determination of ALP is final as the tribunal is highest fact finding authority as determination of ALP is essentially a question of fact. It was argued before apex court that question of selection of companies, comparison of filers, data etc is essentially a factual aspect which was domain of tribunal. However, the Supreme Court brushed aside all these arguments by saying that the decision of tribunal can be challenged interalia on grounds of perversity as well as non observance of the rules relating to transfer pricing in individual cases and allowing both the department and assessee’s SLP remanded all these matters to the respective court for entertaining appeals u/s 260A.

This judgement is important from litigation in transfer pricing arena.

Ramesh Patodia
19-04-2023