Webex Communications India Private Limited, Bangalore V. JCIT, Bangalore

ITA 1615/BANG/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9408 (ITAT-BANGALORE)
• Duration Of Justice: 6 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-03-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 14-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

IT(TP)A.1615/BANG/2012 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'B', BENGALURU BEFORE SHRI. A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER I.T(TP).A NO.1615/BANG/2012 (ASSESSMENT YEAR : 2008-09) WEBEX COMMUNICATIONS INDIA P. LTD NO.2, NORTH PARK ROAD, KUMARA PARK EAST, BENGALURU 560001 .. APPELLANT PAN : AABCC0256A V. JOINT COMMISSIONER OF INCOME-TAX, CIRCLE 12(5), BENGALURU .. RESPONDENT ASSESSEE BY : SHRI. RAJAN VORA, CA REVENUE BY : SMT. NEERA MALHOTRA, CIT-DR HEARD ON : 27.03.2019 PRONOUNCED ON : 05.04.2019 O R D E R PER A. K. GARODIA, ACCOUNTANT MEMBER THESE ARE APPEALS FILED BY THE ASSESSEE AGAINST THE RESPECTIVE ORDERS OF THE ASSESSING OFFICERS PASSED U/S.143(3) R.W.S.144C(13) OF THE ACT, IN PURSUANCE TO THE DIRECTIONS OF THE DRP. IT(TP)A.1615/BANG/2012 PAGE - 2 IT(TP)A.1615/BANG/2012 A. Y. 2008-09 : 02. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : IT(TP)A.1615/BANG/2012 PAGE - 3 THE MODIFIED GROUNDS OF APPEAL ARE AS UNDER : IT(TP)A.1615/BANG/2012 PAGE - 4 02. THE LD. AR FOR THE ASSESSEE HAD DRAWN OUR ATTENTION TO PAGE 21 OF THE ORDER OF THE DRP, WHEREIN AT PARA 13.3 IN TWO LINES, THE DRP HAS REJECTED THE OBJECTION OF THE ASSESSEE. IT WAS SUBMITTED BY THE LD. AR THAT THE ORDER PASSED BY THE DRP WAS CRYPTIC, STEREOTYPED AND A NON-REASONED ORDER AND THEREFORE THE SAME REQUIRES TO BE SET ASIDE. 03. THE LD. AR HAD SUBMITTED THAT THE ISSUE OF SOFTWARE DEVELOPMENT SERVICES AS WELL AS ITES RAISED IN THE ABOVE TWO APPEALS ARE NOW FAIRLY COVERED IN FAVOUR OF THE ASSESSEE BY VARIOUS PRONOUNCEMENTS. THEREFORE WHILE REMANDING THE MATTERS TO THE FILE OF DRP, THE BINDING DECISIONS SHOULD ALSO BE DIRECTED TO BE CONSIDERED BY THE DRP. 04. THE LD. DR RELIES ON THE ORDERS OF THE LOWER AUTHORITIES. 05. WITH RESPECT TO THE APPEAL FOR A. Y. 2010-11, WE HAVE REPRODUCED HEREINABOVE PARA 9 OF THE DRP ORDER WHEREIN THE DRP HAD MERELY FOLLOWED THE ORDER OF THE TPO WITHOUT SPECIFICALLY DEALING WITH THE CONTENTION OF THE ASSESSEE. WE EXPECT THE DRP TO GIVE A REASONED AND COGENT FINDING WHILE DEALING WITH THE CONTENTION OF THE ASSESSEE WITH RESPECT TO EXCLUSION / INCLUSION OF THE COMPARABLES. AS THE ORDER WAS SILENT ON MATERIAL ASPECTS, THEREFORE WE REMAND THE WHOLE OF THE TP ISSUE PERTAINING TO INCLUSION / EXCLUSION TO THE FILE OF THE DRP WITH A DIRECTION TO PASS A REASONED AND SPEAKING ORDER. NEEDLESS TO SAY WHILE DOING SO THE DRP SHALL ALSO FOLLOW THE PROCEDURE AS PROVIDED UNDER THE ACT AND RULES IN ADJUDICATING THE GRIEVANCE OF THE ASSESSEE. THE DRP IS IT(TP)A.1615/BANG/2012 PAGE - 5 DIRECTED TO CONSIDER THE VARIOUS BINDING DECISIONS OF THE COORDINATE BENCH (BANGALORE BENCH) RENDERED IN SIMILAR COMPARABLES AS POINTED OUT BY THE LD. AR DURING THE COURSE OF HEARING FOR THE PURPOSE OF COMPARING THE COMPARABLES. 06. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH DAY OF APRIL, 2019. SD/- SD/- (LALIET KUMAR) (A. K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BENGALURU DATED : 05.04.2019 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.