Fair Issac India Software Private Limited, Bangalore V. Asst.C.I.T., Bangalore

ITA 1522/BANG/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7497 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-07-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 30-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEERA MALHOTRA II
• Assessee Lawyers: PRIYAM SINGHANIA
• Keywords: Transfer pricing

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, BANGALORE BEFORE SHRI. SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER IT(TP)A NO. & ASSESSMENT YEAR APPELLANT RESPONDENT 1522/BANG/2015 2011-12 M/S. FAIR ISAAC INDIA SOFTWARE PVT. LTD., TITANIUM BUILDING, 135 AIRPORT ROAD, KODIHALLI, BENGALURU-560017. PAN : AAACF7670G ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 3(1)(1), 2 ND FLOOR, BMTC BUILDING, 80 FEET ROAD, 6 TH BLOCK, KORAMANGALA, BENGALORE - 560095. ASSESSEE BY : SHRI. PRIYAM SINGHANIA, CA REVENUE BY : MS. NEERA MALHOTRA, CIT-DR-II DATE OF HEARING : 21/09/2017 DATE OF PRONOUNCEMENT : 11/10/2017 O R D E R PER SUNIL KUMAR YADAV, JM : THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST TH E ASSESSMENT ORDER PASSED CONSEQUENT TO THE ORDER OF THE DRP ON VARIOU S GROUNDS. THE DIRECTOR OF THE ASSESSEE COMPANY HAS MOVED AN APPLICATION STATI NG THAT AN AGREEMENT WAS ENTERED UPON BETWEEN THE APPELLANT AND CBDT ON 31.0 8.2017 AND PURSUANT TO THE AGREEMENT, ASSESSEE/APPELLANT IS REQUIRED TO GI VE EFFECT TO THE ADVANCE PRICING AGREEMENT (APA) ROLL-BACK PROVISIONS CONTAI NED IN THE AGREEMENT, AS PROVIDED UNDER RULE 10RA(4) OF THE IT RULES, 1962 ( THE RULES) AND IN VIEW OF THE RULE 10RA(4), THE ASSESSEES REQUEST FOR THE WI THDRAWAL OF TRANSFER PRICING GROUND OF APPEAL REFERRED BEFORE THE TRIBUNAL. IT WAS FURTHER STATED THAT TRANSFER PRICING GROUNDS OF APPEAL FILED BEFORE THE TRIBUNAL RELATE TO THE COVERED TRANSACTIONS UNDER THE APA AND ACCORDINGLY ASSESSEE WANTS TO WITHDRAW THE IT(TP)A NO. 1522/BANG/2015 PAGE 2 OF 3 GROUNDS OF APPEAL FROM NOS.1 TO 8 REFERRED BEFORE T HE TRIBUNAL. THE REQUEST OF THE ASSESSEE WAS NOT OBJECTED TO BY THE REVENUE. W E THEREFORE ALLOW THE ASSESSEE TO WITHDRAW THE GROUND NOS. 1 TO 8 RELATIN G TO TRANSFER PRICING ISSUES. ACCORDINGLY, GROUND NOS. 1 TO 8 ARE DISMISSED AS WI THDRAWN. 2. WITH REGARD TO GROUND NO.9, THE LEARNED COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THIS GROUND RELATE TO DEDUCTION UNDE R SECTION 10A OF THE IT ACT AND THE ISSUE IS SQUARELY COVERED BY JUDGMENTS OF J URISDICTIONAL HIGH COURT IN THE CASE OF TATA ELXSI 349 ITR 98 . THEREFORE, THE TRAVEL EXPENSES INCURRED IN FOREIGN CURRENCY ALSO BE REDUCED FROM THE TOTAL TUR NOVER IN ORDER TO COMPUTE THE DEDUCTION UNDER SECTION 10A OF THE ACT. THE LEARNE D DR DID NOT OBJECT TO THE CONTENTIONS OF THE ASSESSEE AND WE ACCORDINGLY ALLO W THE GROUND OF THE ASSESSEE AND DIRECT THE AO TO REDUCE THE TRAVEL EXPENSES INC URRED IN FOREIGN CURRENCY FROM THE TOTAL TURNOVER ALSO AND THEN RECOMPUTE THE DEDUCTION UNDER SECTION 10A OF THE ACT. 3. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 11 TH OCTOBER, 2017. SD/- SD/- (A. K. GARODIA) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE : BANGALORE DATED : 11/10/2017 /NSHYLU/* IT(TP)A NO. 1522/BANG/2015 PAGE 3 OF 3 COPY TO : 1 APPELLANT 2 RESPONDENT 3 4 CIT DR 5 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME- TAX APPELLATE TRIBUNAL BANGALORE