ORAL ORDER

(PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA)

1. This tax appeal under Section 260-A of the Income Tax Act, 1961 (for short “the Act, 1961”) is at the instance of the revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Ahmedabad 'D' Bench, Ahmedabad dated 07.09.2018 in the ITA No.381/Ahd/2015 for the A.Y. 2010-11.

2. The Revenue has proposed the following two questions of law for the consideration of this Court;

“(A) Whether the Appellate Tribunal has erred in law and on facts o the case in deleting the upward adjustment amounting to Rs.3,47,66,541/- made by Transfer Pricing Officer on account of Management fees?

(B) Whether the Appellate Tribunal has erred in law and on facts in deleting the upward adjustment amounting to Rs.2,46,527/- made by Transfer Pricing Officer on account of Insurance Payment?”

3. It appears from the materials on record that the assessee filed its return of income on 29.10.2010, declaring the total income at Rs. NIL and showed the book profit of Rs.2,64,64,686/- under Section 115JB of the Act. The case was selected for scrutiny and, accordingly, notice under Section 143(2) of the Act was issued. The case was referred t