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ITA 1596/BANG/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8632 (ITAT-BANGALORE)
• Duration Of Justice: 3 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 11-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 06-12-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: KEERTHI NARAYAN
• Keywords: Transfer pricing
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE B BENCH, BANGALORE BEFORE SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER IT(TP)A NO.1596(BNG.)/2012 (ASSESSMENT YEAR : 2008-09) M/S XEROX BUSINESS SERVICES INDIA PVT.LTD. (ERSTWHILE AFFILIATED COMPUTER SERVICES OF INDIA PV T.LTD.,) LEVEL-6, ITPL INNOVATOR BLOCK, WHITEFIELD, BANGALORE-560 066 PAN NO.AADCA8386M APPELLANT VS THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11(1)5 TH FLOOR, R.P.BHAVAN, NRUPATHUNGA ROAD, BANGALORE RESPONDENT ASSESSEE BY : SHRI KEERTHI NARAYAN, CA REVENUE BY : SMT NEERA MALHOTRA, CIT DATE OF HEARING : 11-02-2016 DATE OF PRONOUNCEMENT : 17-02-2016 O R D E R PER SHRI ABRAHAM P GEORGE, AM; WHEN THIS APPEAL FILED BY THE ASSESSEE AGAINST AN A SSESSMENT DONE ON IT BASED ON THE DIRECTIONS OF THE DRP WAS TAKEN UP FOR HEARING, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUES RELATING TO TRANSFER PRICING WERE SUBJECT MATTER OF ADJUDICATION UNDER MUTUAL AGREEMENT PROC EDURE ( MAP ) IN ACCORDANCE WITH ARTICLE 27 OF INDIA USA DOUBLE TAXATION AVOI DANCE CONVENTION. AS PER THE LEARNED AR, ASSESSEE THEREFORE, WAS WITHDRAWING THE GROUNDS RELATING TO TP MATTERS IN THIS APPEAL. IN SUPPORT THEREOF, A COPY OF THE ORDER DATED 28 TH 2 IT(TP)A NO.1596(B)/12 OCTOBER, 2015 FOREIGN TAX & TAX RESEARCH DIVISION O F CBDT WAS FILED. AS PER LEARNED AR, THE ONLY OTHER ISSUE IN THE APPEAL FILE D BY THE ASSESSEE WAS ON EXCLUSION OF THOSE ITEMS WHICH WERE DEDUCTED FROM E XPORT TURNOVER FROM TOTAL TURNOVER AS WELL FOR COMPUTING DEDUCTION U/S 10A OF THE IT ACT, 1961. 2. PER CONTRA, LEARNED DR FAIRLY AGREED THAT THE MA P PROCEEDINGS HAD BROUGHT TO AN END THE DISPUTE BETWEEN THE ASSESSEE AND THE DEPARTMENT IN SOFARAS IT RELATED TO TP MATTER. ON THE OTHER ISSU E, LEARNED DR SUBMITTED THAT DEPARTMENT HAD FILED AN SLP BEFORE THE HONBLE APEX COURT AGAINST THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CS OF CIT VS M/S TATA ELXSI LTD.(2012) 349 ITR 0098. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND ALSO PER USED THE ORDER DATED 28-10-2015 GIVING THE RESULT OF THE MAP PROCEEDINGS FOR THE IMPUGNED ASSESSMENT YEAR IN RELATION TO THE TRANSFER PRICING ISSUE. ASSESSEE HAD SOUGHT WITHDRAWAL OF THE TRANSFER PRICING ISSUES RAISED BY IT IN ITS APPEAL. IN ACCORDANCE WITH ITS REQUEST SUCH GROUNDS ARE DISMISSED AS WITH DRAWN. 4. ONLY OTHER ISSUE IS WITH REGARD TO COMPUTATION O F DEDUCTION AVAILABLE TO THE ASSESSEE U/S 10A OF THE IT ACT, 1961. IN VIEW OF THE JUDGMENT OF THE HONBLE 3 IT(TP)A NO.1596(B)/12 JURISDICTIONAL HIGH COURT IN THE CASE OF M/S TATA E LXSI LTD (SUPRA), ASSESSEE IN OUR OPINION, CAN LEGITIMATELY CLAIM REDUCTION FROM TOTAL TURNOVER, THE ITEMS WHICH ARE EXCLUDED FROM THE EXPORT TURNOVER, WHILE COMPUTING U/S 10A BENEFIT. THIS CLAIM IS DIRECTED TO BE ALLOWED. 5. LEVY OF INTEREST U/S 234B AND 234D BEING CONSEQ UENTIAL DOES NOT NEED SPECIFIC ADJUDICATION. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS P ARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 17 TH FEBRUARY, 2016. SD/- SD/- (VIJAY PAL RAO) (ABRAHAM P GEORGE) JUDICIAL MEMER ACCOUNTANT MEMBER BANGALORE: D A T E D : 17-02-2016 AM COPY TO : 1 APPELLANT 2 RESPONDENT 3. CIT(A), BANGALORE 4. CIT, BANGALORE 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER AR, ITAT, BANGALORE