ACIT, Circle-1(1)(1), Bangalore V. M/s. Acuity Knowledge Centre (India) Pvt. Ltd, Bangalore

ITA 1065/BANG/2022

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The case involves the Assistant Commissioner of Income-tax, Circle 1(1)1, Bangalore as the appellant and M/s. Acuity Knowledge Centre (India) Private Limited as the respondent. The appeal by the Revenue was directed against the order of the CIT(A) dated 12.12.2017 concerning transfer pricing adjustments under the IT enabled services (ITES) for the assessment year 2012-2013. The Transfer Pricing Officer had initially proposed a TP adjustment, which was later deleted by the CIT(A). The Revenue's previous appeal on this matter was rejected by the Tribunal, and subsequent attempts to challenge the CIT(A)'s order were also dismissed. The Tribunal's decision to dismiss the current appeal was based on the grounds that the issues had already been resolved and the appeal was filed without proper procedural compliance.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115200 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 21-11-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing
• Section: 154; 92CA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES “A”, BANGALORE Before Shri George George K, JM & Ms.Padmavathy S, AM ITA No.1065/Bang/2022 : Asst.Year 2012-2013 The Assistant Commissioner of Income-tax, Circle 1(1)1) Bangalore. v. M/s.Acuity Knowledge Centre (India) Private Limited (Earlier known as M/s.Moodys Analytics Knowledge Services (India) Pvt. Ltd.), 7 th Floor Elixir Chancery Building Municipal Door No.135/1-2 Residency Road Bengaluru – 560 025. PAN : AAECA9391H. (Appellant) (Respondent) Appellant by : Sri.K.N.Suresh Babu, Addl.CIT-DR Respondent by : Sri.Chavali Narayanan, CA Date of Hearing : 25.01.2023 Date of Pronouncement : 27 .01.2023 O R D E R Per George George K, JM : This appeal at the instance of the Revenue is directed against CIT(A)’s order dated 12.12.2017. The relevant assessment year is 2012-2013. 2. The Revenue has raised various grounds with regard to transfer pricing adjustment, which were deleted by the first appellate authority under the IT enabled services (ITES). At the very outset, we noticed that the Tribunal in its earlier order dated 14.02.2020 in ITA No.1231/Bang/2018 had rejected revenue’s appeal arising from CIT(A’s order dated 12.12.2017. ITA No.1065/Bang/2022. M/s.Acuity Knowledge Centre (India) Pvt.Ltd. 2 3. The brief backgrounds of the case are as follows: The Transfer Pricing Officer (TPO) vide order dated 25.01.2016 passed u/s 92CA of the I.T.Act proposed TP adjustment under ITES segment amounting to Rs.5,51,81,799. Aggrieved by the said adjustment, the assessee filed an appeal before the first appellate authority. The CIT(A) passed order on 12.12.2017. The order giving effect (OGE) to the directions of the CIT(A) was passed on 21.03.2018. The assessee vide letter dated 18.02.2019 filed an application for rectification of the OGE. The rectification order was passed u/s 154 of the I.T.Act (order dated 13.05.2019), wherein the entire TP adjustment was deleted. 4. As against the CIT(A)’s order, cross appeals were filed before the Tribunal (assessee’s appeal in IT(TP)A No.1184/Bang/2018 and Revenue’s appeal in ITA No.1231/Bang/2018). Before the ITAT, the assessee withdrew its appeal. The Revenue’s appeal was disposed of vide order dated 14.02.2020, wherein the TP grounds urged were rejected as they did not emanate from the order passed by the CIT(A), Later, the Revenue filed Miscellaneous Petition in MP No.56/Bang/2021 by rectifying the grounds of appeal, which were rejected by the ITAT vide its order dated 07.12.2021. 5. The Revenue has once again filed the appeal before the Tribunal (present appeal) against the order of the CIT(A) dated 12.12.2017. The Revenue has filed the present appeal even without filing a condonation petition or an affidavit stating ITA No.1065/Bang/2022. M/s.Acuity Knowledge Centre (India) Pvt.Ltd. 3 therein the reasons for belated filing of this apeal. As mentioned earlier, the Revenue’s appeal arising from the impugned order of the CIT(A) was rejected by the Tribunal vide order dated 14.02.2020. In the said order of the Tribunal, the revenue’s grounds regarding corporate tax issue after elaborate discussion, was rejected. As regards TP adjustment, the grounds were rejected by stating that issue does not arise out of the order of CIT(A). Therefore, the issues have already been concluded and the fresh appeal at this stage by the Revenue is not tenable and the same is hereby rejected. It is ordered accordingly. 4. In the result, the appeal filed by the Revenue is dismissed. Order pronounced on this 27 th day of January, 2023. Sd/- (Padmavathy S) Sd/- (George George K) ACCOUNTANT MEMBER JUDICIAL MEMBER Bangalore; Dated : 27 th January, 2023. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(A)-1, Bangalore 4. The Pr.CIT-1, Bengaluru. 5. The DR, ITAT, Bengaluru. 6. Guard File. Asst.Registrar/ITAT, Bangalore