DCIT, Bangalore V. M/s Omega Healthcare Management Pvt. Ltd., Bangalore

ITA 144/BANG/2015

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3539 (ITAT-BANGALORE)
• Duration Of Justice: 5 year(s) 8 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-11-2020
• Assessment Year: 2010-2011
• Appeal Filed On: 12-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing; International transaction; Competent authority
• Section: 143(3); 144C; 27; 92

Judgement Text

IT(TP)A NOS.144&232/BANG/2015 OMEGA HEALTH CARE MANAGEMENT SERVICES PVT. LTD., BENGALURU IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER IT(TP)A NO.232/BANG/2015 ASSESSMENT YEAR: 2010-11 OMEGA HEALTHCARE MANAGEMENT SERVICES PVT. LTD. NO.33, NAL WIND TUNNEL ROAD MURUGESHPALYA BENGALURU-560 017 PAN NO : AADCM7259F VS. DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE-5(1)(2) BENGALURU APPELLANT RESPONDENT IT(TP)A NO.144/BANG/2015 ASSESSMENT YEAR: 2010-11 DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE-5(1)(2) BENGALURU VS. OMEGA HEALTHCARE MANAGEMENT SERVICES PVT. LTD. NO.33, NAL WIND TUNNEL ROAD MURUGESHPALYA BENGALURU-560 017 APPELLANT RESPONDENT APPELLANT BY : SHRI CHAVALI NARAYANAN, A.R. RESPONDENT BY : MS. NEERA MALHOTRA, D.R. DATE OF HEARING : 11.11.2020 DATE OF PRONOUNCEMENT : 11.11.2020 IT(TP)A NOS.144&232/BANG/2015 OMEGA HEALTH CARE MANAGEMENT SERVICES PVT. LTD., BENGALURU PAGE 2 OF 3 O R D E R PER N.V. VASUDEVAN, VICE PRESIDENT: IT(TP)A NO.232/BANG/2015 IS AN APPEAL BY THE ASSESS EE, WHILE IT(TP)A NO.144/BANG/2015 IS AN APPEAL BY THE REVENUE. BOTH THESE APPEALS ARE DIRECTED AGAINST THE FINAL O RDER OF ASSESSMENT DATED 29.12.2014 OF DCIT CIRCLE-5(1)(2), BENGALURU PASSED U/S 143(3) R.W.S. 144C OF THE INCOME-TAX ACT ,1961 ['THE ACT' FOR SHORT] IN RELATION TO ASSESSMENT YEAR 2010-11. THE GROUND OF CHALLENGE IN BOTH THE APPEALS OF THE ASSESSEE AND T HAT THE DEPARTMENT IS WITH REGARD TO THE DETERMINATION OF A RMS LENGTH PRICE (ALP) IN RESPECT OF AN INTERNATIONAL TRANSACT ION OF RENDERING INFORMATION TECHNOLOGY ENABLED SERVICES (ITES) BETW EEN THE ASSESSEE AND ITS ASSOCIATE ENTERPRISE (A.E.). THE DISPUTED ADDITION IN THE APPEAL BY THE REVENUE IS ALSO WITH REGARD TO THE DETERMINATION OF ALP OF THE AFORESAID INTERNATIONAL TRANSACTION U/S 92 OF THE ACT. 2. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSE SSEE FILED BEFORE US A LETTER DATED 29.10.2020, WHEREIN IT HAS BEEN MENTIONED THAT THE ASSESSEE HAD FILED A REQUEST WITH UNITED S TATES OF AMERICA (USA) COMPETENT AUTHORITY TO INITIATE A MUTUAL AGRE EMENT PROCEDURE (MAP) U/S 27 OF THE DOUBLE TAXATION AVOID ANCE AGREEMENT BETWEEN THE GOVERNMENT OF USA AND THE REP UBLIC OF INDIA FOR AVOIDANCE OF DOUBLE TAXATION FOR PREVENTI ON OF FISCAL EVASION. IN THE APPLICATION SO MADE, RELIEF WAS SO UGHT WITH REGARD TO THE TRANSFER PRICING ADJUSTMENT IN RESPECT OF TH E INTERNATIONAL TRANSACTION THAT IS IN DISPUTE IN THESE APPEALS. T HE COMPETENT AUTHORITIES OF INDIA AND USA HAVE RESOLVED THE CASE AND ACCORDINGLY, THE ASSESSEE SEEKS TO WITHDRAW THE APP EAL FILED BY IT. IT(TP)A NOS.144&232/BANG/2015 OMEGA HEALTH CARE MANAGEMENT SERVICES PVT. LTD., BENGALURU PAGE 3 OF 3 IN TERMS OF RULE 44G OF THE INCOME TAX RULES, 1962 (RULES), THE ASSESSEE IS REQUIRED TO FURNISH PROOF OF WITHDRAWAL OF APPEAL PENDING ON THE ISSUES THAT WERE THE SUBJECT MATTER OF MAP AT THE TIME OF COMMUNICATION OF ACCEPTANCE OF MAP RESOLUTI ON. THE LEARNED COUNSEL FOR THE ASSESSEE HAS ACCORDINGLY SO UGHT LEAVE TO WITHDRAW THE APPEAL OF THE ASSESSEE. 3. WE ACCORDINGLY ACCEPT THE PRAYER FOR WITHDRAWAL OF THE APPEAL OF THE ASSESSEE. THE APPEAL OF THE DEPARTMENT ALSO BE ING AN APPEAL IN RESPECT OF THE INTERNATIONAL TRANSACTION AND DETERM INATION OF ALP IS ALSO LIABLE TO BE DISMISSED IN VIEW OF THE SETTLEME NT OF THE DISPUTE THROUGH MAP. ACCORDINGLY, BOTH THESE APPEALS ARE D ISMISSED. 4. IN THE RESULT, BOTH THE APPEALS OF ASSESSEE AS W ELL AS REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH NOV, 2020. SD/- (CHANDRA POOJARI ) ACCOUNTANT MEMBER SD/- (N.V. VASUDEVAN) VICE PRESIDENT BANGALORE, DATED 11 TH NOV, 2020. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE