UBS (INDIA) P.LTD, MUMBAI V. DCIT 14(3)(1), MUMBAI

ITA 1522/MUM/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2830 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2011-2012
• Appeal Filed On: 17-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAYANT KUMAR LD CIT DR
• Assessee Lawyers: HIRALI DESAI LD
• Keywords: Transfer pricing; Tax effect

Judgement Text

IT [TP] A.NO.1522/MUM/2016 UBS (INDIA) PRIVATE LIMITED ASSESSMENT YEAR-2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL K BENCH, MUMBAI , BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM I.T [TP].A. NO.1522/MUM/2016 ( ASSESSMENT YEAR: 2011-12) UBS (INDIA) PRIVATE LIMITED LEVEL 2, 2 NORTH AVENUE MAKER MAXITY BANDRA KURLA COMPLEX BANDRA (EAST , MUMBAI - 400 051 VS. DEPUTY COMMISSIONER OF INCOME TAX-14(3)(1) AAYKAR BHAVAN, M.K.ROAD MUMBAI-400 020 ! ' PAN/GIR NO. AAACU-4939-M ( !# APPELLANT ) : ( $%!# RESPONDENT ) ASSESSEE BY : HIRALI DESAI, LD. AR REVENUE BY : JAYANT KUMAR, LD. CIT DR & DATE OF HEARING : 28/08/2018 '() / DATE OF PRONOUNCEMENT : 28/08/2018 O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2011-12 CONTEST THE FINAL ASSESSMENT ORDER PASSED U/S 143(3 ) READ WITH SECTION 144C(13) OF THE INCOME TAX ACT, 1961. 2. THE LD. AUHTORIZED REPRESENTATIVE FOR ASSESSEE [ AR], AT THE OUTSET SOUGHT PERMISSION OF THE BENCH TO WITHDRAW THE APPE AL DUE TO SMALLNESS OF THE QUANTUM ADDITIONS AS AGITATED BY THE ASSESSE E UNDER THE APPEAL. IT [TP] A.NO.1522/MUM/2016 UBS (INDIA) PRIVATE LIMITED ASSESSMENT YEAR-2011-12 2 THE WRITTEN REQUEST DATED 24/08/2018, IN THIS REGAR D, HAS BEEN PLACED BEFORE US, THE CONTENTS OF WHICH ARE EXTRACTED BELO W:- RE : UBS (INDIA) PRIVATE LIMITED (THE COMPANY OR WE US) ARISING OUT OF ITA NO.: 1522/MUM-2016 ASSESSMENT YEAR (AY): 2011-12 THE CAPTIONED APPEAL FILED BY US AGAINST THE ORDER THE ORDER OF THE DEPUTY COMMISSIONER OF INCOME TAX-14(3)(1), MUMBAI IS FIXE D FOR HEARING BEFORE THE HONBLE K BENCH ON 28 AUGUST 2018. IN THIS CONNECTION, WE WISH TO SUBMIT THAT AS THE T AX EFFECT ON THE QUANTUM INVOLVED IN THE APPEAL IS SMALL AND THE LIKELY EFFORTS / COS TS INVOLVED IN LITIGATING THE SAME ARE HIGH, THE MANAGEMENT IS DESIROUS OF WITHDRAWING THE APPEAL. HOWEVER, WE RESERVE THE RIGHT TO CONTEST THE ISSUE IN SUBSEQUENT YEARS (IF ANY) AND THE WITHDRAWING OF APPEAL SHOULD NOT BE CONSTRUED AS ACCEPTANCE OF THE ORDER OF THE DEPUTY COMMISSIONER OF INCOME TAX 14(3)(1) ON THE ISSUES INVOLVED. FURTHER, THE APPELLANT STRONGLY BELIEVES THAT THE D RP/ AO/TPO ERRED IN RE- COMPUTING THE ARMS LENGTH PRICE OF THE INTERNATION AL TRANSACTION OF SUPPORT SERVICES (PAID) AMOUNTING TO RS.9,54,514/- AS NIL EVEN THO UGH A DETAILED DOCUMENTATION AND EVIDENCES WAS SUBMITTED IN SUPPORT OF THE SERVI CES RECEIVED. MORE SO THE ADJUSTMENT WAS NOT WARRANTED, SINCE THERE WAS NO TA X BASE EROSION AND NO LOSS TO THE REVENUE, CONSIDERING THE FACT THAT SUCH CHARGES ARE TAXABLE IN INDIA IN THE HANDS OF THE RECIPIENT ENTITY. ACCORDINGLY, IN SPITE OF A STRONG CASE TO ARGUE ON MERITS, IN THE INTEREST OF SMALL TAX EFFECT INVOLVED AND HIGH COST OF LITIGATION, THE MA NAGEMENT REQUEST YOUR HONOURS TO KINDLY PERMIT US TO WITHDRAW THE APPEAL FILED BY US . THE INCONVENIENCE CAUSED TO YOUR HONOURS IS REGRETT ED. NO OBJECTION AGAINST THE WITHDRAWAL HAS BEEN RAISED BY THE REVENUE. IT [TP] A.NO.1522/MUM/2016 UBS (INDIA) PRIVATE LIMITED ASSESSMENT YEAR-2011-12 3 3. CONSIDERING THE SAME, THE APPEAL STAND DISMISSED IN LIMINE AS BEING NOT PRESSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH AUGUST, 2018. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER *& MUMBAI; DATED : 28.08.2018 SR.PS:- THIRUMALESH ! COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. / THE CIT(A) 4. / CIT CONCERNED 5. + ,$- -) *& / DR, ITAT, MUMBAI 6. , ./0 & GUARD FILE ' / BY ORDER, # '$% (DY./ASSTT.REGISTRAR) *& / ITAT, MUMBAI