Nokia India Pvt. Ltd., Gurgaon V. Addl. CIT, New Delhi

ITA 1871/DEL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3195 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2007-2008
• Appeal Filed On: 29-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: GARIMA PANDE
• Keywords: Transfer pricing; Double taxation relief
• Section: 143(3); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH I - 1 , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. SUDHANSHU SRIVASTAVA , JM ITA NO. 1870/DEL/2017 : ASSTT. YEAR : 2006 - 0 7 ITA NO. 1871/DEL/2017 : ASSTT. YEAR : 2007 - 08 NOKIA INDIA PVT. LTD., TEC, LEVEL 18, DLF CYBER CITY, PHASE - III, BUILDING NO. 5, TOWER - A, GURGAON - 122002 VS ADDL. COMMISSIONER OF INCOME TAX, SPECIAL RANGE - 6, NEW DELHI (APPELLANT) (RESPONDENT) PAN /GIR NO. AA ACN2170R ITA NO. 1872/DEL/2017 : ASSTT. YEAR : 2006 - 07 ITA NO. 1873/DEL/2017 : ASSTT. YEAR : 2007 - 08 ITA NO. 1874/DEL/2017 : ASSTT. YEAR : 2008 - 09 ITA NO. 1875/DEL/2017 : ASSTT. YEAR : 2009 - 10 ITA NO. 1876/DEL/2017 : ASSTT. YEAR : 2011 - 12 ITA NO. 1877/DEL/2017 : ASSTT. YEAR : 2012 - 13 NOKIA CORPORATION, C/O - LUTHRA & LUTHRA LAW OFFICES, 103, ASHOKA ESTATE, BARAKHAMBA ROAD, NEW DELHI - 110001 VS DCIT( INTERNATIONAL TAXATION), CIRCLE 2(2)(2), NEW DELHI - 110002 (APPELLANT) (RESPONDENT) PAN /GIR N O. AA BCN3748E ASSESSEE BY : SH. RANJAN VO RA , CA, SH. ABHINAV VIJH, CA & MS. GARIMA PANDE, CA REVENUE BY : SH. SANJAY I. BARA, CIT DR SH . KUMAR PRANAV , SR. DR DATE OF HEARING : 26 .02 .201 8 DATE OF PRONOUNCE MENT : 27 .02 .201 8 ORDER ITA NO S. 1870 TO 1877 /DE L/2017 NOKIA INDIA & NOKIA CORPORATION 2 PER BENCH : THESE APPEALS BY THE ASSESSEE S ARE DIRECTED AGAINST THE SEPARATE ORDERS PASSED BY THE AO U/S 147/143(3) R.W.S. 144C(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) AS PER FOLLOWING DETAILS: S.NO. APPEAL NO. ASSESSEE ASSESSEE ASSESSMENT YEAR ORDER OF THE AO DATED 1 ITA NO.1870/DEL/2017 NOKIA INDIA PVT. LTD. 2006 - 07 31.01.2017 2 ITA N O.1871/DEL/2017 NOKIA INDIA PVT. LTD. 2007 - 08 30.01.2017 3 ITA NO.1872/DEL/2017 NOKIA CORPORATION 2006 - 07 30.01.2017 4 ITA NO.1873/DEL/2017 NOKIA CORPORATION 2007 - 08 30.01.2017 5 ITA NO.1874/DEL/2017 NOKIA CORPORATION 2008 - 09 30.01.2017 6 ITA NO.1875/D EL/2017 NOKIA CORPORATION 2009 - 10 30.01.2017 7 ITA NO.1876/DEL/2017 NOKIA CORPORATION 2011 - 12 30.01.2017 8 ITA NO.1877/DEL/2017 NOKIA CORPORATION 2012 - 13 30.01.2017 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT HE HAS THE INSTRUCTION TO WITHDRAW THESE APPEALS BY STATING IN APPLICATION DATED 23.02.2018 AS UNDER: SUB: WITHDRAWAL OF APPEAL FILED BEFORE THIS INCOME TAX APPELLATE TRIBUNAL IN I.T.A. NO. 1870/PEL - 2017 THIS IS WITH REFERENCE TO THE SUBJECT APPEALS FILED BY THE APPELLANT BEFORE BENCH I OF THIS HON'BLE TRIBUNAL. IN THIS REGARD, IT MAY PLEASE BE NOTED THAT THE SUBJECT APPEAL HAS BEEN FILED BY THE APPELLANT AGAINST THE ORDER PASSED BY THE ADDITIONAL COMMISSIONER OF INCOME TAX, SPECIAL RANGE - 6, CR BUILDING NE W DELHI ('LD. AO') UNDER SECTION 144C(13)/ 143(3) READ WITH SECTION 147 OF THE INCOME TAX ACT, 1961 ('THE ACT') FOR THE SUBJECT YEAR ('IMPUGNED ORDER'). ITA NO S. 1870 TO 1877 /DE L/2017 NOKIA INDIA & NOKIA CORPORATION 3 IN THIS REGARD, IT IS SUBMITTED THAT IN ADDITION TO FILING THE SUBJECT APPEAL BEFORE THIS HON'BLE TRIBU NAL AGAINST THE ABOVE - SAID IMPUGNED ORDER, NOKIA HAD FILED AN APPLICATION UNDER ARTICLE 24 OF THE INDIA - FINLAND DOUBLE TAXATION AVOIDANCE AGREEMENT ('DTAA') FOR INITIATION OF MUTUAL AGREEMENT PROCEDURE ('MAP') BEFORE THE INDIAN AND THE FINNISH COMPETENT AUTHORITIES ('CA') WITH RESPECT TO THE FOLLOWING ISSUES IN APPEAL BEFORE THIS HON'BLE TRIBUNAL: A. DISALLOWANCE N/S 40(A)(I ) - PAYMENT TO NOKIA CORP TOWARDS PURCHASE OF SOFTWARE; B. DISALLOWANCE U/S 40( A)(I) - PAYMENT TO NOKIA CORP TOWARDS PURCHASE OF FIN ISHED GOODS; C. TRANSFER PRICING ADJUSTMENTS TOWARDS (I) AMP (II) PURCHASE OF SOFTWARE FROM NOKIA CORP IT IS RESPECTFULLY SUBMITTED THAT A RESOLUTION HAS BEEN ARRIVED BETWEEN THE INDIAN AND FINNISH CAS ON AL L THE ABOVE TAXATION ISSUES RAISED BEFORE THIS H ON'BLE TRIBUNAL IN THE PRESENT APPEAL. THE SAID RESOLUTION UNDER ARTICLE 24 OF THE INDIA - FINLAND DTA A HAS ALSO BEEN ACCEPTED BY NOKIA VIDE LETTER DATED FEBRUARY 20, 2018. AS PER RULE 44H OF THE INCOME TAX RULES, 1962 ('THE IT RULES'), ORDERS GIVING EFFE CT TO THE MAP RESOLUTION SHALL BE PASSED BY THE LD. AO ONCE ALL APPEALS ARE WITHDRAWN BY THE APPELLANT ON THE ISSUES SO RESOLVED UNDER MAP. ACCORDINGLY, IN LINE WITH THE CONDITION PRECEDENT, AS PRESCRIBED UNDER RULE 44H OF THE IT RULES, THE APPELLANT HEREB Y WITHDRAWS T HE APPEAL IN IT.A. NO. 1870/DEL/ 2017 IN ITS ENTIRETY. IN VIEW OF THE ABOVE, WE REQUEST YOUR HONOUR TO KINDLY CONSIDER THIS APPLICATION AS WITHDRAWAL OF THE ABOVEMENTIONED APPEALS AND WHERE ANY ORDERS ARE REQUIRED TO BE PASSED, WE R EQUEST THE HON BLE BENCH TO KINDLY PASS THE SAME. ITA NO S. 1870 TO 1877 /DE L/2017 NOKIA INDIA & NOKIA CORPORATION 4 IN CASE YOUR HONOUR REQUIRES ANY CLARIFICATION/INFORMATION ON THE ABOVE, WE SHALL BE PLEASED TO PROVIDE THE SAME. THANKING YOU, YOURS SINCERELY, SD/ - DIRECTORS OF NOKIA INDIA PVT. LTD. 3. SIMILAR APPLICATIONS HAVE BEEN FILED BY THE ASSESSEES FOR THE OTHER APPEALS UNDER CONSIDERATION. 4 . DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEES REITERATED THE CONTENTS OF THE AFORESAID APPLICATION AND REQUESTED TO ALLOW THE WITHDRAWAL OF THE APPEAL S UNDER CONS IDERATION. 5. IN HIS RIVAL SUBMISSIONS, THE LD. DR DID NOT OBJECT IF THE APPEALS OF THE ASSESSEE S ARE DISMISSED AS WITHDRAWN. 6 . WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE , FROM THE AFORESAID APPLICATION S SUBMITTED BY THE ASSESSEE S , IT IS NOTICED THAT THE ASSESSEE S IN ADDITION TO FILING THE APPEAL S BEFORE THE INCOME TAX APPELLATE TRIBUNAL HAD FILED APPLICATION S UNDER ARTICLE 24 OF THE INDIA - FINLAND DOUBLE TAXATION AVOIDANCE AGREEMENT ( DTAA ) FOR INITIATION OF MUTUAL AGREEMENT PROCEDURE ( MAP ) BEFORE THE INDIAN AND THE FINNISH COMPETENT AUTHORITIES ( CA S ) ON ALL THE ISSUES RAISED BEFORE THE ITAT IN THE PRESENT APPEALS. THEREAFTER, THE RESOLUTION HAD BEEN ARRIVED BETWEEN TH E INDIAN AND FINNISH CAS ON ALL THE ISSUES RAISED BEFORE THE ITAT IN ITA NO S. 1870 TO 1877 /DE L/2017 NOKIA INDIA & NOKIA CORPORATION 5 THE PRESENT APPEALS. THE SAID RESOLUTION HAD BEEN ACCEPTED BY THE ASSESSEE S VIDE LETTER DATED 2 3 .02.2018. IN VIEW OF THE ABOVE, THESE APPEALS FILED BY THE ASSESSEES ARE DISMISSED AS WITHD RAWN. 7 . IN THE RESULT, THE APPEAL S OF THE ASSESSEE S ARE DISMISSED. ( ORDER PRON OUNCED IN THE OPEN COURT ON 27 /02 / 2018 ) SD/ - SD/ - ( SUDHANSHU SRIVASTAVA ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27 /0 2 /2018 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR