CISCO SYSTEMS (INDIA) PRIVATE LIMITED,BNAGALORE V. DCIT- CIRCLE 2(2)(1), BANGALORE

ITA 1891/BANG/2024

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Cisco Systems (India) Pvt. Ltd. appealed against the assessment order for the Assessment Year 2020-21, which included a transfer pricing adjustment of Rs.53,40,15,927. The appellant argued that the adjustments were not in accordance with the unilateral and bilateral advanced pricing agreements entered into with the Central Board of Direct Taxes (CBDT). The Tribunal found merit in the appellant's arguments, leading to the direction for deletion of the transfer pricing adjustment and verification of the advance tax payment. The appeal was partly allowed for statistical purposes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717546 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 26-09-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: NAGESHWAR RAO
• Keywords: Transfer pricing
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER IT(TP)A No.1891/Bang/2024 Assessment Year : 2020-21 M/s. Cisco Systems (India) Pvt. Ltd., SEZ Unit Kadubeesanahalli Village, Bellandur S.O. Kadabeesanahalli, Bangalore – 560 103. PAN: AABCC 0258 Q Vs. The Assistant Commissioner of Income Tax, Circle – 2(2)(1), Bangalore. APPELLANT RESPONDENT Appellant by : Shri. Nageshwar Rao, Advocate Respondent by : Dr. Divya K. J, CIT(DR)(ITAT), Bangalore. Date of hearing : 11.08.2025 Date of Pronouncement : 14.08.2025 O R D E R Per Prashant Maharishi, Vice President: 1. IT(TP)A No. 1891/Bangalore/2024 is filed by Cisco Systems (India) Pvt. Ltd., (the assessee/appellant) for Assessment Year 2020 – 21 against the Assessment Order passed under section 143(3) r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 (The Act), dated 29/07/2024, by the Assessment Unit (the learned Assessing Officer) of the assessee at Rs.1344,16,04,290/- against the returned income of Rs.1192,60,35,990/-. In this assessment, the transfer pricing adjustment was retained of Rs.53,40,15,927/- after the direction of the learned Dispute Resolution Panel (learned DRP), Bangalore, dated 18.06.2024. 2. Assessee is aggrieved and has preferred this appeal raising grounds against transfer pricing matters. As per ground Nos.1-4, assessee contends that there Printed from counselvise.com IT(TP) A No.1891/Bang/2024 Page 2 of 3 are 2 adjustments made on account of transfer pricing, but the unilateral advanced pricing agreement and bilateral advanced pricing agreement entered into by the assessee with the Central Board of Direct Taxes have not been granted effect of. 3. Contesting these grounds, the learned Authorized Representative submitted copy of the bilateral advanced pricing agreement dated 21.07.2023 and unilateral advanced pricing agreement dated 12.01.2024 entered between the assessee and CBDT along with the modified return of income filed on 19.10.2023 in compliance with bilateral advanced pricing agreement and on 29.04.2024 in compliance to unilateral advanced pricing agreement. Therefore, it was submitted that the transfer pricing adjustments cannot survive. Copies of APA and Modified returns are submitted in the paper book. 4. On these grounds, the learned CIT(DR) also agreed that in view of unilateral advanced pricing agreement and bilateral advanced pricing agreement, the addition with respect to the transfer pricing matters does not survive. 5. In view of the above facts, we direct the learned AO to delete the addition of Rs.53,40,15,927/-, after verification of the advanced pricing agreements and modified return. Accordingly, ground Nos.1 to 4 are allowed subject to above direction. 6. Ground No.5 was not pressed and hence dismissed. 7. Ground No.6 is with regard to non-consideration of the fact that assessee has paid advance tax amounting to Rs.35 Crores and credit for the same was not Printed from counselvise.com IT(TP) A No.1891/Bang/2024 Page 3 of 3 granted. The learned Authorized Representative has furnished challan of Rs.35 Crores which was paid on 11.12.2019 for the impugned Assessment Year 2020-21. 8. After hearing both the parties, we direct the learned Assessing Officer to verify the same and grant credit of the above sum as advance tax after verification of challan. Accordingly, ground No.6 of the appeal is allowed. 9. Ground Nos.7 and 8 are with respect to levy of interest under section 234A of the Act, same is consequential in nature, and therefore, same are dismissed. 10. In the result, appeal of the assessee is partly allowed for statistical purposes. Pronounced in the open court on the date mentioned on the caption page. Sd/- Sd/- (PRAKASH CHAND YADAV) (PRASHANT MAHARISHI) Judicial Member Vice President Bangalore, Dated : 14.08.2025. /NS/* Copy to: 1. Appellants 2. Respondent 3. DRP 4. CIT 5. CIT(A) 6. DR, ITAT, Bangalore. 7. Guard file By order Assistant Registrar, ITAT, Bangalore. Printed from counselvise.com "