Philips Software case: Karnataka HC grants stay and admits many substantial questions of law
FOR the Transfer Pricing provisions in the Income Tax Act, it has been a long journey of seven years to reach the High Court stage in the normal course of legal proceedings. True, a couple of writs were filed after the first appellate orders and a few points relating to power of TPO and validity of Board's instruction have been decided in the past but TP cases have now begun to reach the High Courts after the Tribunal deciding about a dozen cases. Netizens may recall what the Tribunal had held in the case of Philips Software Centre case - in the last quarter of last calendar year and TIOL had reported the same as the basic premise of the TP provisions is to prevent the flight of profit outside India, and since the assessee in this case was happily availing Sec 10A benefits, it was not a fit case for application of TP laws.
We bring you the High Court order today.