M/s AXA Technologies Shared Services Private Limited, Bangalore V. DCIT, Bangalore

ITA 12/BANG/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8504 (ITAT-BANGALORE)
• Duration Of Justice: 4 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 14-02-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 04-01-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SWAPNA DAS
• Keywords: Transfer pricing; Opportunity of being heard; International transaction; Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 10B; 201; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, B E NGAL U R U BEFORE SHRI A.K. GARODIA , ACCOUNTANT MEMBER AND SHRI LALI E T KUMAR, JUDICIAL MEMBER IT (TP) A NO. 12 / BANG/20 1 3 (ASSESSMENT YEAR: 20 08 - 09 ) M/S.A XA TECHNOLOGIES SHARED SERVICES PVT. LTD., (FORMERLY KNOWN AS AXA TECHNOLOGY SERVICES INDIA PVT. LTD.) 2 ND & 3 RD FLOOR, MFAR, MANYATA TECH P ARK , RACHENAHALLI VILLAGE, NAGAWARA, BENGALURU - 560045. PAN: AAFCA 0850 L VS. APPELLANT DEPUTY COMMISSIONER OF INCOME - TAX, CIRCLE 11(1), BENGALU RU. RESPONDENT AND IT(TP)A NO. 756 /BANG/201 3 (ASSESSMENT YEAR: 200 8 - 09 ) DEPUTY COMMISSIONER OF INCOME - TAX, CIRCLE 11(1), BENGALURU. VS. APPELLANT M/S. AXA TECHNOLOGIES SHARED SERVICES PVT. LTD., BENGALURU. RESPONDENT AS SESSEE BY : SHRI T.SURYANARAYANA, ADVOCATE. REVENUE BY : SMT. SWAPNA DAS, JCIT(DR) DATE OF HEARING : 14/02/2017 DATE OF PRONOUNCEMENT : 15 /0 3 /2017 O R D E R PER SHRI A.K. GARODIA , AM : THESE ARE CROSS APPEALS FILED BY THE ASSESSEE AND THE REVENUE AND THESE ARE DIRECTED AGAINST THE ORDER OF THE IT (TP) A NO S . 12 & 756 /BANG/201 3 PAGE 2 OF 11 CIT(A) - IV, BENGALURU DATED 02/11/2012 FOR THE ASSESSMENT YEAR 2008 - 09. 2. THE GROUNDS RAISED BY THE ASSESSEE IN ITS APPEAL ARE AS UNDER: IT (TP) A NO S . 12 & 756 /BANG/201 3 PAGE 3 OF 11 3. THE GROUNDS RAISED BY THE REVENUE IN ITS A PPEAL ARE AS UNDER: IT (TP) A NO S . 12 & 756 /BANG/201 3 PAGE 4 OF 11 4. FIRST WE WILL TAKE UP THE ASSESSEE S APPEAL. IT WAS SUBMITTED BY THE LEARNED AR OF THE ASSESSEE THAT GROUND NO.1 IS GENERAL NATURE. REGARDING GROUND NO.2 IT WAS SUBMITTED THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE B Y THE TRIBUNAL ORDER RENDERED IN THE CASE OF BARTRONICS INDIA LTD. VS. ACIT AS REPORTED IN 22 TAXMAN.COM 5 (HYD) . HE FILED A COPY OF THE TRIBUNAL ORDER AND POINTED OUT THAT AS PER THE TRIBUNAL ORDER, IT WAS HELD THAT IF THERE IS ANY DISALLOWANCE U/S 40(A)( IA) OF THE ACT, THEN BENEFIT TO CONSIDER SUCH ADDITIONS MADE AND SUCH RECOMPUTED PROFIT SHALL BE CONSIDERED FOR THE PURPOSE OF DEDUCTION U/S 10B OF THE IT ACT. IT WAS SUBMITTED THAT AS PER THIS TRIBUNAL ORDER, GROUND NO.2 OF THE ASSESSEE SHOULD BE ALLOWED. 5. REGARDING GROUND NO.3, HE SUBMITTED THAT IT IS CONSEQUENTIAL AND GROUND NO.4 IT WAS SUBMITTED THAT THE SAME IS GENERAL. 6. REGARDING REMAINING GROUND NO.5 TO 11, HE SUBMITTED THAT AS PER TRIBUNAL ORDER IN ASSESSEE S OWN CASE FOR ASSESSMENT YEAR 2007 - 08 IN ITA NO.659/BANG/2012 DATED 25/7/2016, THIS MATTER IT (TP) A NO S . 12 & 756 /BANG/201 3 PAGE 5 OF 11 SHOULD GO BACK TO THE FILE OF THE AO/TPO FOR FRESH DECISION BECAUSE THE FACTS ARE IDENTICAL. HE SUBMITTED THAT IN THE ADVANCE PRICING AGREEMENT DATED 28/3/2016, DEPARTMENT HAS ACCEPTED INTERNATIONAL TR ANSACTION INCLUDING PAYMENT OF MANAGEMENT FEES ON THE BASIS OF TNMM ALONG WITH OTHER SERVICES INSTEAD OF EXAMINING SEPARATE ALP FOR MANAGEMENT FEES. 7. LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 8. WE HAVE CONSIDERED RIVAL SUBMISSIONS. GROUND NO.1 IS GENERAL FOR WHICH NO DECISION IS CALLED FOR. 9. REGARDING GROUND NO.2, WE FIND THAT THIS ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT OF THE HON BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. TATA EL XSI REPORTED IN 349 ITR 98. IT WAS HELD BY THE HON BLE HIGH COURT IN THAT CASE THAT TOTAL TURNOVER IS SUM TOTAL OF EXPORT TURNOVER AND DOMESTIC TURNOVER AND THEREFORE, IF ANY AMOUNT IS REDUCED FROM EXPORT TURNOVER THEN THE TOTAL TURNOVER SHALL ALSO GOES DOWN BY THE SAME AMOUNT. RESPECTFULLY FOLLOWING THIS JUDGMENT OF THE HON'BLE KARNATAKA HIGH COURT, WE DIRECT THE AO TO REDUCE TOTAL TURNOVER ALSO BY THE SAME AMOUNT BY WHICH EXPORT TURNOVER WAS REDUCED AND THEN COMPUTE THE DEDUCTION ALLOWABLE TO THE ASSE SSEE U/S 10A. ACCORDINGLY, GROUND NO.2 IS ALLOWED FOR STATISTICAL PURPOSES. IT (TP) A NO S . 12 & 756 /BANG/201 3 PAGE 6 OF 11 10. GROUND NO.3 IS HELD TO BE CONSEQUENTIAL. GROUND NO.4 IS GENERAL. GROUND S NO S .5 TO 11 INVOLVE TRANSFER PRICING ISSUE. WE FIRST REPRODUCE PARA.9 OF THE TRIBUNAL ORDER REND ERED IN ASSESSEE S OWN CASE IN ITA NO.659/BANG/2012 DATED 25/07/2016: 9 . WE H AVE C O N S I D ER E D T H E R I VAL S UB M I S S I O N S AS WE L L AS TH E R ELEV A N T MA T E RI A L O N R E C O R D . WE F I N D TH A T T H E A S S E S S EE B E N C H MA R K ED I T S I N T E R N A T I O N A L T R A N S A C T I O N S B Y C O M P U T I N G TH E O P ERA T I N G MA R G I N AT E N T I T Y L EVEL W H I C H I S N O T A S P ER T H E P R O V I S I O N S O F T R A N SF ER PR I CI N G B E C A U S E TH E I NT E R N A T I O N A L T R A N S A C T I O N S H A S T O B E T E S T E D B Y C O M P A R I N G W I T H U N C O N T R O L L ED A N D U N R EL A T E D P RI C E. WHEN TH E A S S E S S EE EA R N S TH E R EVE N U E O F M O R E TH A N 5 0 % F R O M T H E N O N - A E CL I E N T S TH E N T H E B E N C H MA R K I N G O F TH E I NT E R N A T I O N A L T R A N S A C T I O N S B Y T AK IN G TH E R E S U L T S AT E N T I T Y L EVELS I S N O T A P P R O P R I A T E T H ERE F O R E WE D O N O T A P P R O VE S U C H ME T H O D O L O G Y A P P LI E D B Y T H E A S S E S S EE I N B E N C H MA R K I N G T H E I N T E R N A T I O N A L T R A N S A C T I O N S . H O WEV E R T H E T P O H AS S EG R E GA T E D T H E I T E S F R O M MA N A GEM E N T F EES A N D F O U N D THAT THE INTERNATIONAL TRANSACTIONS OF ITES EXCLUSIVE OF MANAGEMENT FEES AT ARM S LENGTH. THE ACTION OF THE TPO IN DETERMINING THE ALP OF MANAGEMENT FEES AT NIL IS NOT J U S T I F I E D B E C A U S E TH E A S S E S S EE H AS P AID T H E M A N AG E ME N T F EES U N D ER T H E AG R E E M E N T W H ERE I N TH E S E R V IC ES P R O V I D ED B Y T H E A E H AS B E E N E N LI S T E D . T H ERE F O R E , W I T H O U T G I V I N G A F IN D I N G TH A T T H E A S S E S S EE H AS AL S O I N C U R R ED EX P E N D I T U R E I N R E S P E C T O F TH E S A ME S ER V I C ES O VER A N D A B O VE T H E M A N AG E M E N T F EES P AID T O T H E A E I T C A NN O T C A N N O T B E S A I D T H AT TH E A S S E S S EE H AS N O T R E C EIV E D TH E AL L E G E D MA N A GEM E N T S ER V I C E S . T H U S O N L Y W H E N I T I S FO U N D T H AT T H E A S S E S S EE H AS AL S O I N CU RR ED T H E E X P E N D I T U R E O N A CC O U N T O F TH E S AME S E R V I C ES A N D AL S O P A I D T H E M A N AG E ME N T F EES T O TH E A E T H EN T H E TP O / A. O MAY C O ME T O T H E C O N C L U S I O N TH A T T H E A S S E S S EE H AS P A I D T H E M A N AG E M E N T F EES W I T H O U T AVA I L I N G T H E S ER V I C ES F R O M T H E A E. EV E N O T H E R W I S E W H EN TH E MA N A GEM E N T F EES P A I D U ND E R TH E AG R EEM E N T A N D TH E R E I S N O F I N D IN G B Y T H E A U T H O R I T I ES B EL O W T H AT T H E S A M E S ERV I C ES AL S O AVA I L E D B Y TH E A S S E S S EE S E P A R A T E L Y F R O M 3 R D P A R T Y A N D B OO K E D T H E EX P E N D I T U R E I N T H E P R OF I T A N D L OS S A C C O UN T TH E N D E T E R M I N A T I O N O F TH E A L P A T N I L I S N O T A C C E P T A B L E. T H E A S S E S S EE H AS F IL ED T H E A G R E E ME N T U N D ER W H I C H T H E MA N A GEM E N T F EES WAS P AID T O T H E A E A L O N G W I T H T H E R ELEV A N T R E C O R D A N D TH E D E P A R T ME N T H AS A C C E P T E D T H E MA N A GE M E N T F EES AL O N G W I T H I TES U N D ER TH E A D VA N C E P RI CI N G A G R E E ME N T DT . 28 . 3 . 2 01 6 T H EN M A K I N G A S E P AR A T E A D J U S T M E N T B Y TH E T P O B Y D E T E R M I N I N G TH E A L P O F MA N A GEM E N T F EES AT N I L I S C O N T R ARY T O T H E STAND OF THE DEPARTMENT ITSELF WHILE AGREEING TO THE ADVANCE PRICING AG R EEM E N T . WE F I N D I N TH E A D V A N C E P RI C I N G A G R EEM E N T IT (TP) A NO S . 12 & 756 /BANG/201 3 PAGE 7 OF 11 D T . 28 . 3 . 2 0 1 6 , T H E D E P A R T ME N T H AS A C C E P T ED TH E I NT E R N A T I O N AL T R A N S A C T I O N S R E C O R D E D I N C L A U S E 3 A T AR M S L E N G T H AS U N D ER : 3 . COV E R E D TRAN S AC T I O N. THE I N T E RNA T I O NAL T RAN S A C T I O NS O F PR O VI S I O N O F I N F O RMA T I O N T E CHN O L O GY I N F RA S T RUCTURE AND I T S UPP O RT SE RVIC E S . I N T E RC O MPANY CHARG E S I N C L UD I NG - - PAYM E NT O F MANAG E M E NT F EE S - PAYM E NT O F BU S I N E S S C O N S UL T ANCY CHARG E S - PAYM E NT O F GUARAN T E E C O MM I SS I O N - PAYM E NT O F O T H E R E XP E N S E S S UCH AS C O MMUN I CA T I O N E XP E N S ES , C O N T RA C T O R E XP E N S ES , R E PA I RS AND MA I N T E NANCE AND T R A N S V E R S AL CHARG E S - PAYM E NT T O WARDS P E O PLE S O F T M A I N T E NANC E - PAYM E N T S T O WARDS I N T E RN E T CHARG E S AND S O F T WARE E XP E N S E S - TRAINING E XP E N S E S - S O F T WARE E XP E N S E S - PAYM E N T S T O WARDS SE RVICE CHARG E S - PAYM E N T S T O WARDS W E B H O S T I NG AND M A I N T E NANCE - A NY O T H E R I N T E R - C O MPANY CHARGE O F S I M I L AR NATURE BE T WE E N T HE APP E L L ANT AND I T S A E S , AS D E S CR I B E D I N A PP E ND I X I , S HA L L BE T HE C O V E R E D T RAN S AC TI O NS F O R T HE A GR E E M E NT A N D T HE A GR E E M E NT S HA L L APP L Y O N L Y T O T H E S E I N T E RNA T I O N A L T RAN S A C T I O N S . T H O U G H T H E P R I C E A C C E P T ED B Y TH E D E P AR T ME N T UN D ER S A I D AG R E E ME N T ARE N O T A P P LI C A B L E FO R TH E YE A R U ND E R C O N S I D E R A TI O N H O WEVE R , O N P R I N CI P L E TH E MA N A GEM E N T F EES I S A C C E P T E D AL O N G W I T H T H E O T H ER S ER V I C E A N D TH E A L P FO R I TES AS WELL AS OTHER SERVICES INCLUDING THE PAYMENT OF MANAGEMENT FEES HAS TO BE D E T E R M I N E D O N C O M P OS I T E T R A N S A C T I O N B A S I S . T H E TPO H AS N O T EXA M I N ED TH E MA T T ER B Y C O N S I D E R I N G T H E MA N A GEM E N T F EES AS P ART O F TH E O P ERA T I N G C OS T FO R TH E P U R P OS E O F T E S T I N G TH E I T ES AS P ER P R O V I S I O N S O F S E C T I O N 9 2 O F TH E A C T . A CC O R D I N G L Y , WE S ET A SI D E TH E M A TT E R T O T H E R E C O R D O F T H E T P O / A. O F O R R E C O N S I D E R A TI O N O F T H E S A ME A F R E S H I N T E R M S O F TH E A B O VE O B S E R VA T I O N S . SINCE NO DIFFEREN CE IN FACTS WERE POINTED OUT BY THE LEARNED DEPARTMENTAL REPRESENTATIVE IN THE PRESENT YEAR, WE, RESPECTFULLY FOLLOWING THIS TRIBUNAL ORDER IN ASSESSEE S OWN CASE FOR ASSESSMENT YEAR 2007 - 08, SET ASIDE THE ORDER OF THE CIT(A) ON TP ISSUE AND RESTORE THIS MATTER BACK TO THE FILE OF THE AO/TPO FOR FRESH DECISION WITH SAME DIRECTION AS WAS GIVEN BY THE TRIBUNAL IN ASSESSMENT YEAR 2007 - 08 AS REPRODUCED ABOVE. THESE GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSES. IT (TP) A NO S . 12 & 756 /BANG/201 3 PAGE 8 OF 11 11 . IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED IN THE TERMS INDICATED ABOVE. 12 . NOW, WE TAKE UP THE APPEAL OF THE REVENUE. LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ASSESSMENT ORDER WH EREAS LEARNED AR OF THE ASSESSEE SUPPORTED THE ORDER OF THE CIT(A). IT WAS ALSO SUBMITTED THAT GROUND NO.1 IS GENERAL. GROUND NO.2, 3 AND 4 ARE IN RESPECT OF DEDUCTION ISSUE I.E. REGARDING COMPUTATION OF DEDUCTION U/S 10A OF THE ACT AND THIS ISSUE IS NO W COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT OF THE HON BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. TATA ELXSI AS REPORTED IN 349 ITR 98. REGARDING SECOND ISSUE , AS PER GROUND NOS.5 TO 11 IN RESPECT OF EXCHANGE FLUCTUATION LOSS ON ACCOUNT OF ECB LOAN AND CONSEQUENT ADDITION OF RS.122.58 LAKHS DELETED BY THE CIT(A), IT IS SUBMITTED THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL ORDER RENDERED IN THE CASE OF COOPER CORPORATION (P) LTD. VS. DCIT AS REPORTED IN 69 TAXMAN .CO M 244 (PUN) . HE FILED A COPY OF THE TRIBUNAL ORDER. HE DRAWN OUR ATTENTION TO PARAS.4 TO 12 OF THIS TRIBUNAL ORDER AND SUBMITTED THAT FACTS ARE NOTED IN PARA.4. THEREAFTER, HE POINTED OUT THAT IN THAT CASE, FACTS WERE THAT LOAN WAS TAKEN TO TAKE BENEFIT O F LOW RATE OF INTEREST REGIME ON FOREIGN CURRENCY LOAN IN INDIA AND FOR THIS REASON, FOREIGN CURRENCY LOAN WAS TAKEN TO REP AY RUPEE LOAN . HE POINTED OUT THAT IT WAS HELD BY THE TRIBUNAL IN THAT CASE THAT AS PER PROVIS IONS OF SECTION 43A OF THE ACT, EXCHAN GE FLUCTUATION CAN BE ADDED TO THE COST OF FIXED ASSETS IF IT (TP) A NO S . 12 & 756 /BANG/201 3 PAGE 9 OF 11 SUCH FIXED ASSETS ARE PURCHASED FROM OUTSIDE INDIA BUT SINCE ASSETS IN THAT CASE WERE PURCHASED IN INDIA , IT WAS HELD THAT SECTION 43A IS NOT APPLICABLE. IT WAS SUBMITTED THAT IN THE PRESENT CASE , ALSO ASSETS WERE NOT PURCHASED FROM OUTSIDE INDIA AND THEREFORE, LOSS CANNOT BE ADDED TO THE COST OF ASSET. AT THIS JUNCTURE, A QUERY WAS RAISED BY THE BENCH AS TO WHETHER DETAILS REGARDING MANNER IN WHICH FOREIGN CURRENCY LOAN WAS USED IS AVAILABLE IN T HE PAPER BOOK AND WHETHER THOSE DETAILS WERE EXAMINED BY THE AUTHORITIES BELOW. IN REPLY, IT WAS SUBMITTED BY THE LEARNED AR OF THE ASSESSEE THAT THOSE DETAILS ARE NOT READILY AVAILABLE AND THE LOWER AUTHORITIES DID NOT GO INTO THOSE DETAILS BECAUSE IT WA S HELD BY THE LOWER AUTHORITIES THAT SUCH LOSS ON ACCOUNT OF FLUCTUATION IN FOREIGN CURRENCY RATE IS A NOTIONAL AND CONTINGENT LOSS. THEREAFTER, THIS PROPOSITION W AS PUT FORWARD BY THE BENCH THAT THE MATTER WILL BE RESTORED BACK TO THE FILE OF THE AO FOR FRESH DECISION AND THE ASSESSEE IS AT LIBERTY TO RAISE ALL ARGUMENTS BEFORE HIM. IN REPLY, LEARNED AR OF THE ASSESSEE SUBMITTED THAT SPECIFIC DIRECTION SHOULD BE GIVEN TO THE AO TO FOLLOW THIS DECISION OF THE PUNE BENCH OF THE TRIBUNAL. 1 3 . WE HAVE HEARD RIVAL CONSIDERATIONS. WE FIND THAT GROUND NO.1 IS GENERAL FOR WHICH NO DECISION IS CALLED FOR. WE HOLD ACCORDINGLY. 14. IN GROUNDS NOS.2 ,3 AND 4 THE ISSUE INVOLVED IS REGARDING COMPUTATION OF DEDUCTION ALLOWED TO THE ASSESSEE U/S 10A AFTER IT (TP) A NO S . 12 & 756 /BANG/201 3 PAGE 10 OF 11 REDUCING D ATA LINK CHARGES FROM TOTAL TURNOVER AS HAS BEEN REDUCED FROM THE EXPORT TURNOVER. WE HAVE ALREADY HELD WHILE DECIDING THE APPEAL OF THE ASSESSEE THAT THIS ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT OF THE HON BLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TATA ELXSI (SUPRA). EVEN IF SPECIAL LEAVE IS FILED BY THE REVENUE BEFORE THE HON BLE SUPREME COURT AGAINST THIS JUDGMENT OF THE HON BLE KARNATAKA HIGH COURT, THE JUDGMENT OF HON BLE KARNATAKA HIGH COURT IS BINDING ON US BECAUSE THI S IS NOT THE CASE OF THE REVENUE THAT STAY HAS BEEN GRANTED BY THE HON BLE APEX COURT AGAINST THE OPERATION OF THE JUDGMENT OF THE HON BLE KARNATAKA HIGH COURT. HENCE, WE SEE NO MERIT IN THESE GROUNDS OF REVENUE. ACCORDINGLY, GROUND NOS.2, 3 AND 4 ARE REJ ECTED. 15. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT WHETHER FOREIGN EXCHANGE LOSS HA S TO BE CONSIDERED AS INCREASE IN VALUE OF ASSETS IS DEPENDENT ON THIS FACT AS TO WHETHER FOREIGN CURRENCY LOAN WAS USED FOR PURCHASING FIXED ASSETS OR W HETHER IT WAS USED FOR CURRENT ASSETS AND WHETHER SUCH FIXED ASSETS WERE PURCHASED WITHIN THE COUNTRY OR FROM OUTSIDE COUNTRY. SINCE THESE FACTS REGARDING USER OF FOREIGN CURRENCY LOAN ARE NOT AVAILABLE IN PAPER BOOK AND THESE DETAILS WERE NOT EXAMINED AN D COMMENTED UPON BY THE LOWER AUTHORITIES, WE FEEL IT PROPER TO RESTORE BACK THIS MATTER TO THE FILE OF THE AO FOR FRESH DECISION. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE MATTER BACK TO THE FILE OF THE AO FOR FRESH DECISION AFTER PROVIDING IT (TP) A NO S . 12 & 756 /BANG/201 3 PAGE 11 OF 11 ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IN ABSENCE OF NECESSARY FACTS, WE DO NOT MAKE ANY COMMENT ON THE ALLOWABILITY OF THIS CLAIM OF THE ASSESSEE AND THE ASSESSEE IS AT LIBERTY TO MAKE ALL ARGUMENTS BEFORE THE AO AND THE AO SHOUL D PASS NECESSARY ORDER AS PER LAW AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, GROUNDS NO.5 TO 10 OF THE REVENUE S APPEAL ARE ALLOWED FOR STATISTICAL PURPOSES. 16. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN TE RMS INDICATED ABOVE AND THE APPEAL OF THE REVENUE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES AND ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH MARCH , 201 7 S D/ - SD / - ( LALI E TH KUMAR ) ( A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : B EN GAL URU D A T E D : 15 /0 3 /2017 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE