DCIT, Circle-17(2), Hyd, Hyderabad V. Wells Fargo India Solutions Pvt.Ltd., Hyderabad

ITA 111/HYD/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6031 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-04-2018
• Assessment Year: 2011-2012
• Appeal Filed On: 05-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ EEV RANKA
• Assessee Lawyers: DEBADUTTA MOHANTY
• Keywords: Search and seizure
• Section: 143(3)

Judgement Text

ITA NO 111 OF 2016 AND CO 19 OF 2017 WELLS FARGO IN DIA P LTD HYDERABAD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO111/HYD/2016. (ASSESSMENT YEAR: 2011-12) DY. COMMISSIONER OF INCOME TAX, CIRCLE 17(2) HYDERABAD VS M/S. WELLS FARGO INDIA SOLUTIONS (P) LTD HYDERABAD PAN: AAACW6592N (APPELLANT) (RESPONDENT) C.O. NO.19/HYD/2017 (ARISING OUT OF ITA NO111/HYD/2016) (ASSESSMENT YEAR: 2011-12) M/S. WELLS FARGO INDIA SOLUTIONS (P) LTD, HYDERABAD PAN: A AACW6592N VS DY. COMMISSIONER OF INCOME TAX, CIRCLE 17(2) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI DEBADUTTA MOHANTY FOR REVENUE : SHRI RAJEEV RANKA, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THE REVENUES APPEAL AS WELL AS THE CROSS OBJECTION OF THE ASSESSEE ARE AGAINST THE FINAL ASSESSMENT ORDER PASSED U/S 143(3) R.W.S. 147 AND 144C OF THE ACT. AT THE TIME OF HEARING, THE LEARNED DR HAS BROUGHT TO OUR NOTICE THE LETTER OF THE AO DATED 10.08.2017 STATING AS FOLLOWS: DATE OF HEARING: 09.04 . 201 8 DATE OF PRONOUNCEMENT: 09.04.2018 ITA NO 111 OF 2016 AND CO 19 OF 2017 WELLS FARGO IN DIA P LTD HYDERABAD. PAGE 2 OF 3 OFFICE OF THE DY. COMMISSIONER OF INCOME-TAX CIRCLE-17(2), HYDERABAD TOP PRIORITY / / ITAT MATIER BY FAX: [phone] DCIT/CIR.17(2)/2016-17 DATE: 10-08-2017 TO THE COMMISSIONER OF INCOME TAX (DR), 'A'BENCH, ROOM NO.601, CGO TOWERS, KAVADIGUDA, HVDERABAD, SIR, SUB: APPEAL FILED BY THE DEPTT. AGAINST THE ORDER O F DRP IN THE CASE OF M/S. WELLS FARGO SOLUTIONS PVT LTD FOR A.Y 2011-12 WITHDRAWAL OF APPEAL REG. REF: 1. ITA NO.LL1/H/16 2. CIT (DR)'S LETTER DATED 07-08-2017 ADDRESSED TO PR. CIT-5, HYDERABAD KINDLY REFER TO THE ABOVE. AS REQUESTED IN THE REFERENCE 2ND CITED, THE FACTUA L POSITION WITH REGARD TO APA BETWEEN THE CBDT AND THE ASSESSEE FOR THE AY 2011-12 HAS BEEN VERIFIED AND IT IS TO COMMUNICATE THE FOLLOWING POI NTS:- (I) , THE ONLY ADDITION PROPOSED IN THE DRAFT ASSES SMENT ORDER (WHICH WAS QUASHED BY THE HON'BLE DRP) WAS ON ACCOUNT OF T RANSFER PRICING ADJUSTMENT. (II) ASSESSMENT YEAR 2011-12 IS FORMING PART OF THE ROLL BACK YEARS TO WHICH THE ADVANCE PRICING AGREEMENT (APA) BETWEEN T HE ASSESSEE AND THE CBDT AND THE SAME IS APPLICABLE. (III) AS PER PARA NO.6 OF THE ADVANCE PRICING AGREE MENT DATED 24-11-2015 THE ARM'S LENGTH PRICE FOR ADVANCE PRICING AGREEMEN T YEARS AND ROLL BACK YEARS SHALL BE THE OPERATING PROFIT MARGIN OF NOT LESS THAN 18%. (IV) AS SEEN FROM THE LETTER OF DCIT, (TPO)-3, HYDE RABAD DATED 02-08- 2017, THE ASSESSEE COMPLIED WITH THE MARGIN AGREED IN ADVANCE PRICING ADJUSTMENT OF 18% FOR THE AY 201112, IN CONTRAST TO THE OBSERVATION MADE BY THE THEN DCIT (TPO)-3, HYDERABAD IN A LETTE R DATED 21-12~2016 TO THE EFFECT THAT THE ASSESSEE COMPANY WORKED OUT THE MARGIN ONLY AT 17.18%. (V}. IN VIEW OF THE ABOVE FACTS, GROUND NO.2 OF THE APPEAL TAKEN REGARDING THE LEGALITY OF THE DRP ORDER HAS BECOME PURELY ACA DEMIC WITHOUT ANY REVENUE IMPLICATION . HENCE, THE REVENUES APPEAL IN THE CASE OF WELLS FA RGO SOLUTIONS PVT LTD FOR THE A.Y 2011-12 MAY BE WITHDRAWN/NOT PURSUED IN ACCORDANCE WITH RULE 10RA(5) R.W.S. 92CC & 92CD OF THE I.T. ACT, 19 61. A COPY OF TPO-3S LETTER IS ENCLOSED FOR KIND PERUS AL. YOURS FAITHFULLY ITA NO 111 OF 2016 AND CO 19 OF 2017 WELLS FARGO IN DIA P LTD HYDERABAD. PAGE 3 OF 3 SD/- (B.SUNIL KUMAR) DY.CIT, CIRCLE 17(2) HYDERABAD 2. TAKING THE SAME INTO CONSIDERATION, THE REVENUE S APPEAL IS DISMISSED AS WITHDRAWN. 3. THE ASSESSEE HAS ALSO FILED LETTER DATED 2 ND AUGUST, 2017 SEEKING PERMISSION TO WITHDRAW THE CROSS OBJEC TION. SINCE THE REVENUES APPEAL IS ALREADY DISMISSED, THE CROS S OBJECTION IS ALSO DISMISSED AS WITHDRAWN. 4. IN THE RESULT, APPEAL OF THE REVENUE AS WELL AS THE CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED AS WI THDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 9 TH APRIL, 2018. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 9 TH APRIL 2018. VINODAN/SPS COPY TO: 1 DY.CIT, CIRCLE 17(2) 6 TH FLOOR, B BLOCK IT TOWERS, AC GUARDS, HYDERABAD 2 M/S. WELLS FARGO INDIA SOLUTIONS LTD, WELLS FARGO CENTRE, BUILDING NO.1A, DIVYASHREE NSL SEX, SURVEY NO.66/1, RAIDURG VILLAGE, SERILINGAMPALLY MANDAL, HYDERABAD 500032 3 DRP-1, G-16, GROUND FLOOR, CENTRAL REVENUE BUILDI NGS, QUEENS ROAD, BENGALURU 560001 4 PR. CIT 5, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER