The Intellinet Technologies India Pvt. Ltd., V. ITO,

ITA 1542/BANG/2013

• Counselvise Citation: 154221114 RSA 2013
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 13-11-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRISCILLA SINGSIT
• Assessee Lawyers: BHARAT L
• Keywords: Transfer pricing; International transaction
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH C BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER I.T. (T.P) A. NO. 1542 /BANG/20 1 3 (ASSESSMENT YEAR : 2005-06) THE INTELLINET TECHNOLOGIES INDIA PVT. LTD., 215-216, 1 ST FLOOR, OXFORD TOWERS, 139, OLD AIRPORT ROAD, BANGALORE-560 08 VS. INCOME TAX OFFICER, WARD 11(2), BANGALORE. APPELLANT RESPONDENT. APPELLANT BY : SHRI BHARAT. L, C . A. RESPONDENT BY : MS. PRISCILLA SINGSIT, CIT (DR). DATE OF HEARING : 13.3.2013. DATE OF PRONOUNCEMENT : 13.03.2014. O R D E R PER SHRI JASON P. BOAZ, A.M. : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-IV, BANGALORE DT.17.9.2013 FOR ASSESSMENT YEAR 2005-06. 2. THE FACTS OF THE CASE, IN BRIEF, ARE AS UNDER : - 2,1 THE ASSESSEE, A COMPANY ENGAGED IN THE BUSINESS OF DEVELOPMENT AND EXPORT OF SOFTWARE, FILED ITS RETURN OF INCOME, FOR ASSESSMEN T YEAR 2005-06 ON 28.10.2005 DECLARING TOTAL INCOME OF RS.5,050 AFTER CLAIMING D EDUCTION UNDER SECTION 10A OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS ' THE ACT') AMOUNTING TO RS.78,85,434. THE RETURN WAS PROCESSED UNDER SECTION 143(1) OF TH E ACT AND THE CASE WAS SUBSEQUENTLY TAKEN UP FOR SCRUTINY. THE ASSESSMENT WAS COMPLETE D BY AN ORDER UNDER SECTION 143(3) OF THE ACT DT.15.12.2008 WHEREIN THE INCOME OF THE ASS ESSEE WAS COMPUTED AT RS.76,87,955, DUE TO AN ADJUSTMENT IN THE ARMS LENGTH PRICE (ALP) AMOUNTING TO RS.75,42,354 ON 2 IT(TP)A NO.1542/BANG/2013 ACCOUNT OF INTERNATIONAL TRANSACTIONS ENTERED INTO BY THE ASSESSEE IN THE YEAR UNDER CONSIDERATION I.E. A.Y. 2005-06 PROPOSED VIDE TPOS ORDER UNDER SECTION 92CA R.W.92CA(4) OF THE ACT DT.26.6.2008. 2.2 AGGRIEVED BY THE ORDER OF ASSESSMENT FOR ASSESS MENT YEAR 2005-06 DT.15.12.2008, THE ASSESSEE PREFERRED AN APPEAL BEF ORE THE LEARNED CIT (APPEALS) IV, BANGALORE. THE LEARNED CIT (APPEALS) DISPOSED OFF THE ASSESSEE'S APPEAL VIDE ORDER DT.17.9.2013 WHEREIN THE ASSESSEE WAS ALLOWED PARTI AL RELIEF. 2.3 AGGRIEVED BY THE ORDER OF LEARNED CIT (APPEALS) IV, BANGALORE FOR ASSESSMENT YEAR 2005-06, THE ASSESSEE PREFERRED APPEAL BEFORE THIS TRIBUNAL RAISING THE FOLLOWING GROUNDS : 1. THE ORDER OF THE LEARNED APPELLATE AUTHORITY T O THE EXTENT PREJUDICIAL TO THE APPELLANT IS BAD IN LAW. 2.1 THE LEARNED APPELLATE AUTHORITY ERRED IN NOT ACCEPTING THE CONTENTION OF THE APPELLANT FOR REJECTING SELECT COMPANIES AS COM PARABLES THOUGH THESE COMPANIES HAVE SIGNIFICANT FUNCTIONAL DIFFERENCES A ND INVOLVE EXTRA-ORDINARY EVENTS VIS--VIS THE APPELLANT. 2.2 THE ACTION OF LEARNED APPELLATE AUTHORITY IN DIRECTING THE LEARNED A.O. TO RE-CONSIDER THE SET OF THE ABOVE COMPANIES AMOUNTS TO SETTING ASIDE THE ORDER OF THE LEARNED A.O. WHICH IS NOT PERMISSIBLE UNDER THE ACT. 3. THE LEARNED APPELLATE AUTHORITY ERRED IN DENYI NG RISK ADJUSTMENT TO THE OPERATING PROFIT MARGINS OF THE COMPARABLE COMPANIE S. THE LEARNED APPELLATE AUTHORITY ERRED IN NOT TAKING COGNIZANCE OF THE RUL ING OF THIS HON'BLE BENCH IN THE APPELLANTS OWN CASE FOR A.Y. 2006-07 IN RELATI ON TO PROVIDING RISK ADJUSTMENTS. 3. IN THE COURSE OF HEARING OF THE APPEAL, THE ASSE SSEE HAS FILED A LETTER DT.28.1.2014 SUBMITTING THAT IT WISHES TO WITHDRAW THIS APPEAL F ILED BEFORE THIS TRIBUNAL ON 13.11.2013. THE DETAILS OF THE LETTER ARE EXTRACTED AS UNDER : JANUARY 28, 2014. TO THE ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE. SIR, 3 IT(TP)A NO.1542/BANG/2013 SUB : INTELLINET TECHNOLOGIES INDIA PRIVATE LIMITED INCOME TAX APPEAL FILED FOR THE ASSESSMENT YEAR 2005-06 ON 13.11.2013 APP LICATION FOR WITHDRAWAL OF THE APPEAL. THIS IS WITH REFERENCE TO THE APPEAL FILED BY THE A PPELLANT BEFORE THE HON'BLE INCOME TAX APPELLATE TRIBUNAL FOR THE A.Y.2005-06 O N 13.11.2013 (COPY OF THE ACKNOWLEDGMENT RECEIVED ON THE FILING IS ENCLOSED H EREWITH FOR READY REFERENCE). THE APPELLANT HEREBY SUBMITS THAT IT D ESIRES TO AVOID FURTHER LITIGATION AND ACCORDINGLY, WISHES TO WITHDRAW THE SUBJECT APPEAL FILED WITH THE HON'BLE TRIBUNAL. WE REQUEST YOU TO PLACE THIS APPLICATION BEFORE THE HON'BLE BENCH AND OBLIGE. THANKING YOU, FOR INTELLINET TECHNOLOGIES INDIA PRIVATE LIMITED SD/- X X X S K GHOSAL, DIRECTOR. IN VIEW OF THE WITHDRAWAL OF THE APPEAL IN IT(TP)A NO.1542/BANG/2013 VIDE ASSESSEE'S LETTER DT.28.1.2014 (SUPRA), WE DISMISS THE APPEAL AS WITHDRAWN. 4. IN THE RESULT, THE ASSESSEE'S APPEAL IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 13.03.2014. SD/- SD/- (N.V. VASUDEVAN) (JASON P BOAZ) JUDICIAL MEMBER ACCOUNTANT MEMB ER *REDDY GP COPY TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, - BENCH. 6. GUARD FILE. (TRUE COPY ) BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE .