29 June 2018 Indian High Court rules on principles for admissibility of transfer pricing appeals by High Courts The Honorable Karnataka High Court (HC) on June 25, ruled in the case of Softbrands India Private Limited (Taxpayer). The ruling sets forth some significant principles relating to admissibility of appeals by HCs which involve transfer pricing (TP) issues. Under the Indian income tax law (ITL), an appeal against an order of an Income tax Appellate Tribunal (Tribunal), which is the second-level appellate forum in the hierarchy of appellate authorities, can be made to the jurisdictional HC. However, an HC can only admit an appeal if it is satisfied that the case involves a "substantial question of law." In the instant case, the issue before the HC was whether comparability issues in TP as decided by the Tribunal give rise to any substantial question of law for the HC to admit and thereafter adjudicate an appeal. Document ID: 2018-1337 |
