LI Network
Published on: 21 April 2023 at 13:18 IST
Supreme Court clarifying the issue stated that the Determination of the arm’s length price by the Tribunal can be subject to scrutiny by the High Court in an appeal under Section 260A of the Income Tax Act.
there cannot be any absolute proposition of law that in all cases where the Tribunal has determined the arm’s length price the same is final and cannot be the subject matter of scrutiny by the High Court in an appeal under Section 260A of the IT Act.
Supreme Court said in its order that, “When the determination of the arm’s length price is challenged before the High Court, it is always open for the High Court to consider and examine whether the arm’s length price has been determined while taking into consideration the relevant guidelines under the Act and the Rules”.
SAP LABS INDIA PVT LTD. VS.INCOME TAX OFFICER, CIRCLE 6, BANGALORE, C.A NO.8463 OF 2022
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