Arm's length price (ALP) as determined by ITAT can it be questioned before high court on grounds of perversity/not in accordance of law

Facts:

In a batch of cases most being revenue appeals and some by the assessee it was pleaded by the revenue that once the ALP is confirmed by the ITAT the same cannot be disturbed by the high court as it is no longer a question of law but of fact. Only appeals on point of law can be appealed to high court. Revenue's contention was there is no absoluteness in the ITAT order as per law and thus it can be called upon in question before the high court.

Held that the ALP computation can be questioned before the high court. There is no absolute proposition in law. Thus ALP if held by ITAT can be questioned as point of law on applicability of perversity and not having followed the law etc. The questioning has to fall in the scope of section 260A however at least in principle.

Ed. Note: The ruling is a welcome one for assessee's as in many cases the department has made high pitched ALP additions without looking into circumstances of transactions.

Case: SAP Labs India (P) Ltd. v. ITO 2023 TaxPub(DT) 2471 (SC)