“The question framed pertains to the transfer pricing/ALP determination, carried out by the Transfer Pricing Officer (TPO) under Section 92CA read with Rule 10D of the Income Tax Rules. So far as Keynote Corporate Service Ltd. is concerned, the ITAT appears to have excluded that entity from the list of comparables on the ground that for the present as also the previous year, the entity had reported abnormally high profits. The Revenue correctly urges that abnormal profits per se do not warrant exclusion of the comparables which might otherwise be functionally similar. The assessee urges that for AY 2006-07 after the judgment was delivered by this Court [on 27.04.2015 in Chryscapital Investment Advisors (India) Pvt. Ltd. Vs. Dy. Commissioner of Income Tax, (2015) 376 ITR 183 (Delhi)], the question of functional similarity was gone into and the ITAT rendered elaborate findings that Keynote Corporate Service Ltd. was entirely dis-similar. It is submitted that likewise in January, 2017, similar findings with respect to functional dis-similarity of Keynote Corporate Service Ltd. from the assessee’s business were rendered by ITAT. It appears that Tribunal has not considered these judgments in the light of the settled law that each year’s findings might be a guide, but, cannot be conclusive on the issues involved. Page 2 of 4
