JUDGMENT

Manmohan, J. (Oral)--Present Income Tax Appeal has been filed challenging the Order dated 22nd January, 2021 passed by the Income Tax Appellate Tribunal (`ITAT') in ITA Nos.1619/Del/2016 and 1727/Del/2016 for the Assessment Year 2007-08.

2. Learned counsel for the appellant states that the ITAT has erred in relying upon the judgment of this Court in Sony Ericsson Mobile Communication vs. CIT, reported in 374 ITR 118 (Del), as the Department has not accepted the decision passed in Sony Ericsson (supra) and has preferred an appeal against the said decision before the Supreme Court.

3. He also states that the ITAT has erred in holding that the Bright Line Test was not mandated in law and hence impermissible without considering the fact that the Bright Line Test was not used as a method to determine the price but only as an economic tool to arrive at the cost of services rendered to the foreign enterprise by the Indian entity and the TPO has the mandate to `determine' such `cost' as a primary step in ALP determination as provided under the Rules.

4. This Court in Sony Ericsson (supra) has categorically held that Bright Line Test has no statutory mandate. The relevant ext