Dhanush Infotech Private Limited, Hyderabad V. Asst.Commissioner of Income Tax, Circle-17(1), Hyderabad

ITA 2082/Hyd/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 9035 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-10-2018
• Assessment Year: 2013-2014
• Appeal Filed On: 08-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J SIRI KUMAR
• Assessee Lawyers: MITHILESH
• Keywords: Transfer pricing; International transaction; Question of law; Working capital adjustments
• Section: 92B; 142(1)

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE S MT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S . RIFAUR RAHMAN , ACCOUNTANT MEMBER ITA NO. 2082 /HYD/201 7 ASSESSMENT YEAR: 20 13 - 14 DHANUSH INFOTECH PVT. LTD., HYDERABAD. PAN A ACCD 8140R VS. ASST. COMMISSIONER OF INCOME - TAX, HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI MITHILESH REVENUE BY : SHRI J. SIRI KUMAR DATE OF HEARING : 03 - 1 0 - 201 8 DATE OF PRONOUNCEMENT : 17 - 1 0 - 201 8 O R D E R PER S . RIFAUR RAHMAN, A .M.: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) 5 , HYDERABAD, DATED 22 / 09 /201 7 FOR AY 20 13 - 14 . 2. BRIEF FACTS OF THE CASE ARE, ASSESSEE COMPANY, ENGAGED IN THE BUSINESS OF PROVIDING END - TO - END IT SOLUTIONS, SERVICES & PRODUCTS, FILED ITS RETURN OF INCOME FOR THE AY 2013 - 14 ON 27/11/2013 DECLARING INCOME OF RS. 2,64,07,280/ - UNDER NORMAL PROVISIONS OF THE INCOME - TAX ACT, 1961 (IN SHORT THE ACT) AND BOOK PROFIT OF RS. 2,51,55,570/ - , WHICH WAS PROCESSED U/S 143(1) OF THE ACT. SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTICES U/S 143(2) AND 142(1) WERE ISSUED AND DULY SERVED ON THE ASSESSEE ALONG WITH A QUESTIONNAIRE CAL LING FOR INFORMATION. IN RESPONSE TO THE SAID NOTICES, THE AR OF THE ASSESSEE FURNISHED THE INFORMATION CALLED FOR. 2 ITA NO. 2082 /HYD/201 7 DHANUSH INFOTECH PVT. LTD., HYD. 2.1 AFTER VERIFICATION OF THE INFORMATION, THE AO REFERRED THE MATTER TO TPO U/S 92CA(1) WITH THE PRIOR APPROVAL OF THE PR .CIT - 5, HYDERABAD FOR DETERMINATION OF ARMS LENGTH PRICE IN RESPECT OF INTERNATIONAL TRANSACTION REPORTED BY THE ASSESSEE FOR THE FY RELEVANT TO AY 2013 - 14 2. 2 DURING THE COURSE OF TP PROCEEDINGS, THE TPO ASKED THE AR OF THE ASSESSEE TO FURNISH THE DETAI LS OF RECEIVABLES. THE AR OF TH E ASSESEE SUBMITTED THE SAME ON 26. 10.2016. ON VERIFICATION OF THE SAME, THE TPO NOTICED THAT SOME OF THE RECEIVABLES ARE RECEIVED AFTER THE CREDIT PERIOD AND IT WAS PROPOSED TO CHARGE INTEREST@ 14.45% P.A. ON THE RECEIVABLE S RECEIVED BEYOND THE CREDIT PERIOD ALLOWED, TO WHICH THE TAXPAYER REPLIED THAT OUTSTANDING RECEIVABLES ARE CONSEQUENT TO THE INTERNATIONAL TRANSACTIONS OF PROVISION OF SDS AND NOT IN THE NATURE OF ANY ADVANCE/LOANS. SINCE THESE ARE CLOSELY LINKED WITH THE SALE OF SERVICES THEY HAVE BEEN AGGREGATED WITH THE PRINCIPLE TRANSACTION OF SALES FOR THE PURPOSE OF ECONOMIC ANALYSIS. IT IS FULLY FUNDED ENTITY AND THE SALES AND RECEIVABLES ARE RUNNING ACCOUNTS AND THE WCA DULY CONSIDERED THE IMPACT OF OUTSTANDING REC EIVABLES. THE AR OF THE ASSESSEE HAS RELIED ON VARIOUS CASE LAWS OF VARIOUS TRIBUNALS IN THIS REGARD. 2 .3 AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE TPO OBSERVED THAT W ITH THE RETROSPECTIVE INTRODUCTION OF EXPLANATION TO SECTION 92B, RECEIVABL ES FORM A PART OF INTERNATIONAL TRANSACTION AND NO FURTHER ANALYSIS IS REQUIRED. HE FURTHER OBSERVED THAT ON GOING THROUGH THE SUBMISSION MADE , IT IS SEEN THAT THE TAXPAYER HAS PROJECTED THAT RECEIVABLES AT THE END OF YEAR ARE FORMING PART OF THE WCA COMP UTATION AND AS SUCH THE INTEREST IS ALREADY IMPACTED THEREIN. HOWEVER, THE RECEIVABLES ARE OFF - SET BY PAYABLES ALSO AND IN CASE TO CASE DIFFER. HOWEVER, THERE MAY BE A SITUATION WHERE THE ASSESSEE DOES NOT RECEIVE IN MARCH ITSELF THEN IN THIS CASE THE RE CEIVABLES AT THE END OF THE YEAR W OULD BE ALMOST NIL AND IT WOULD GIVE A FAVOURABLE WCA TO THE TAXPAYER. ALSO, THE WCA TAKES INTO 3 ITA NO. 2082 /HYD/201 7 DHANUSH INFOTECH PVT. LTD., HYD. ACCOUNT THE PAYABLES AS WELL AS RECEIVABLES AT THE END OF THE YEAR BUT DOES NOT TAKE INTO ACCOUNT THE RECEIVABLES WITHIN THE Y EAR. THEREFORE, THE CONTE NTION OF THE ASSESSEE WAS REJECTED BY TPO. TPO OBSERVED THAT ONCE THE TRANSACTION IS AN INTERNATIONAL TRANSACTION THEN THE ARM'S LENGTH PRICE HAS T O BE DETERMINED. IT IS NOT THE CASE OF AGGREGATION OF TRANSACTIONS WHICH THE TAXPAY ER IS PROJECTING WHEN IT SAYS THAT THE WCA TAKES INTO ACCOUNT THE IMPACT OF OUTSTANDING RECEIVABLES. IN THIS REGARD, TPO RELIED ON CHIELINDIA PVT. LTD. [TS - 145 - ITAT - 2014 (DEL) AND IN THE CASE OF M / S LOGIX MICRO SYSTEMS LTD. VS. ACIT (ITA NO. 524/BANG/200 9). IN VIEW OF THE ABOVE OBSERVATIONS, THE TPO CHARGED INTEREST @ 14.45% ON THE RECEIVABLES RECEIVED BEYOND THE DUE DATE AS UNDER: DATE OF RISING INVOICE AMOUNT DATE OF RECEIPT DELAY IN NO. OF DAYS DELAY AFTER 90 DAYS CREDIT PERIOD INTEREST ADJUSTMENT PROPOSED 18/05/12 38127180 16/11/12 182 92 138866 23/0412 10514000 21/02/13 304 214 890752 18/10/12 10822084 23/02/13 128 38 162806 18/10/12 5518136 17/07/13 272 182 397593 30/11/12 13566250 17/05/13 168 78 418918 31/12/12 2713250 26/12/13 391 301 323319 15/03/13 11139906 20/02/14 416 326 1437719 15/03/13 6160034 20/02/14 342 252 614552 15/03/13 2474585 21/04/14 402 312 305655 10/0213 353 1350 06/05/14 447 357 499096 20/02/13 11423157 (*) 137554 22364255 (*) 269303 142908219 6576629 (*) THE ASSESSEE HAS SUBMITTED BANK STATEMENTS OF THE KENYA AE AND ALSO PROVIDED AN AFFIDAVIT ALONG WITH REASONS OF DELAY. CONSIDERING THE FACTUAL CIRCUMSTANCES, ONLY ONE MONTH INTEREST TILL T HE END OF THE FY IS BEING LEVIED ON TWO SAID INVOICE WHICH ARE OUTSTANDING AS ON DATE. 2.4 THE TPO, THUS, DETERMINED THE SLP OF RECEIVABLES AT RS. 65,76,629/ - AND THE SAME IS MADE AS ADJUSTMENT U/S 92CA(3). 2.5 THE AO INCORPORATED THE ABOVE ADJUSTMENT IN THE FINAL ASSESSMENT ORDER. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). 4 ITA NO. 2082 /HYD/201 7 DHANUSH INFOTECH PVT. LTD., HYD. 4. THE CIT(A) AFTER DISCUSSING THE ISSUE ELABORATELY WITH VARIOUS CASE LAW, DIRECTED THE AO TO APPLY THE APPLICABLE INTEREST RATES GIVEN AS UNDER, IN STEAD O F 14.45% APPLIED BY THE TPO ACCORDING TO THE NUMBER OF DAYS OF DELAY: DOMESTIC TERM DEPOSIT RATES OF SBI AS ON (INFORMATION AVAILABLE ON THE WEBSITE OF SBI THAT THE INTEREST RATES PREVAILING FOR THE FY 2012 - 13) 7 DAYS TO 90 8.00 7.25 7 7 7 6.5 6.5 7,5 91 DAYS TO 179 8.00 7.25 7 7 7 6.5 6.5 7.5 18 7 7.25 7 7 7 6.5 6.5 6.5 CIT(A) OBSERVED THAT THE TPO MAY GIVE CREDIT FOR THE INTEREST AMOUNT ALREADY OFFERED BY THE ASSESSEE WHILE WORKING OUT THE INTEREST ADJUSTMENT TO BE MADE. 4. 1 THE CIT(A) FURTHER HELD AS UNDER: 5.13 INTEREST UP TO END OF THE YEAR: FURTHER, IN MY VIEW, THE TP ADJUSTMENT (INTEREST COMPUTATION) HAS TO BE RESTRICTED TO THE PERIOD OF THE RELEVANT ASSESSMENT YEAR ON THE RATIONALE OF THE DECISION OF THE HON'BL E MUMBAI ITAT, IN THE CASE OF TECHNIMONT ICB HOUSE VS. DCIT - 9(3), MUMBAI 20 (ITA NO,487/MUM/2014) IN WHICH IT WAS HELD THAT 'THE ADDITION ON ACCOUNT OF INTEREST SHOULD BE COMPUTED ONLY TILL THE END OF FINANCIAL YEAR [(I.E., TILL 31 ST MARCH, 2009 AND NOT TILL THE DATE OF PASSING OF TRANSFER PRICING ORDER (I.E., 28TH JANUARY, 2013) ] . IT IS TRITE LAW THAT INCOME TAX HAS TO BE COMPUTED WITH REFERENCE TO THE PREVIOUS YEAR AND AS PER SECTION 5 OF THE ACT EXPLAINS THE SCOPE OF TOTAL INCOME T O BE CONSIDERED EARNED BY ANY PERSON DURING THE PREVIOUS YEAR'. HOWEVER, FOR THAT PURPOSE, THE RECEIVABLES FROM THE AE AT THE BE GINNING OF THE FINANCIAL YEAR (WITH RESPECT TO THE INVOICES RAISED IN THE PR ECEDING FINANCIAL YEAR) AND ALSO THE RECEIVABLES FRO M THE INVOICES RAISED DU RING THE FINANCIAL YEAR, HAVE TO BE CONSIDERED. ACCORDINGLY, I DIRECT THE AO TO RESTRICT THE ADJUSTMENT FOR DELAY IN PAYMENT TILL THE END OF THE FINANCIAL YEAR. HOWEVER, HE HAS TO CONSIDER THE INVOICES RAISED IN THE EARLIER FINANCIA L YEAR ALSO, IN RESPECT OF WHICH THE PAYMENTS ARE RECEIVED DURING THE FINANCIAL YEAR RELEVANT TO THE ASSESSMENT YEAR, AND COMPUTE THE ADJUSTMENT IN ACCORDANCE WITH THE DIRECTIONS GIVEN ABOVE. 5 ITA NO. 2082 /HYD/201 7 DHANUSH INFOTECH PVT. LTD., HYD. 5.14 RESTRICTION OF PERIOD (FOR IMPUTATION OF INTEREST) TO TH E PREVIOUS YEAR: THE TPO CHARGED INTEREST FOR DELAY AFTER 90 DAYS CREDIT PERIOD. I DO NOT FIND ANY INFIRMITIES IN THE OBSERVATIONS OF TPO / AO IN THIS REGARD. 5. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US RAISING THE FOLLOWING G ROUNDS OF APPEAL: BASED ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED ASSESSING OFFICER ('AO') / LEARNED TRANSFER PRICING OFFICER ('TPO') AND THE HON 'BLE COMMISSIONER OF INCOME TAX (APPEALS) ('CIT(A) ERRED IN: 1. COMPUTATION AND LE VY OF INTEREST ON OUTSTANDING RECEIVABLE BALANCE OF AE'S AS ON 31ST MARCH, 2013 AND DISREGARDING THE FACT THAT THEY ARE MERE CONSEQUENTIAL TO THE MAIN INTERNATIONAL TRANSACTION OF SOFTWARE SERVICES AND NOT A SEPARATE INTERNATIONAL TRANSACTION AS SUCH. 2. MAKING TP ADJUSTMENT BY IMPUTING INTEREST ON OUTSTANDING RECEIVABLES AS ON MARCH 31ST 2013 RELATING TO SALE OF SOFTWARE SERVICES TO AES: A) NOT APPRECIATING THE FACT THAT UNDER TNMM, THE IMPACT OF OUTSTANDING RECEIVABLES ON THE WORKING CAPITAL ADJUSTMENTS HAVE ALREADY BEEN TAKEN INTO ACCOUNT IN DETERMINING THE ARM'S LENGTH MARGIN HENCE THERE IS NO NEED OF IMPUTING INTEREST ON OUTSTANDING RECEIVABLES AGAIN; B) NOT APPRECIATING THE FACTS AND CIRCUMSTANCES SURROUNDING THE RECEIVABLES AND RE - CHARACTERIZING TH E OUTSTANDING RECEIVABLES AS UNSECURED LOANS ADVANCED TO AES C) NOT APPRECIATING THAT THE INSTANT TRANSACTION IS NOT COVERED IN THE DEFINITION OF INTERNATIONAL TRANSACTION AS DEFINED UL S 92B OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. WITH OUT PREJUDICE, NOT UNDERTAKING AN OBJECTIVE ECONOMIC ANALYSIS AND DETERMINING THE ARM'S LENGTH INTEREST RATE ON OUTSTANDING RECEIVABLES AT 7.5% BY A) NOT APPRECIATING THAT THE RECEIVABLES DUE FROM OVERSEAS AE'S ARE IN FOREIGN CURRENCY AND HENCE INTEREST, IF ANY, IS TO BE BENCHMARKED WITH THE RATES PREVALENT IN THE INTERNATIONAL MARKET FOR FOREIGN CURRENCY LOANS. [I.E. AT USD 'LIBOR PLUS'); B) NOT DETERMINING THE ARM'S LENGTH CREDIT PERIOD AND NOT RESTRICTING THE INTEREST CALCULATION UPTO MARCH 31, 2013. 6 ITA NO. 2082 /HYD/201 7 DHANUSH INFOTECH PVT. LTD., HYD. 6. LD. AR RELIED ON THE FOLLOWING CASE LAW: 1. KUSUM HEALTHCARE PVT. LTD. VS. ACIT, ITA NO. 6814/DEL/2014 2. OPEN TEX T CORPORATION INDIA PVT. LD. VS. DCIT, ITA NO. 232/HYD/16 3. EPAM SYSTEMS INDIA PVT. LTD. VS. ACIT, ITA NO. 192/HYD/17 4. BATRONICS INDIA LTD. VS. DCIT, ITA NO. 259/HYD/17 5. HEXAGON CAPACILITY CENTER INDIA PVT. LD. VS. ACIT, ITA NOS. 251/H/16 & 84/HYD/17 6. PEGA SYSTEMS WORLDWIDE INDIA PVT. LTD. VS. ACIT, ITA NO. 1758/HYD/14. 7. LD. DR, ON THE OTHER HAND, RELIED ON THE ORDERS REVENUE AUTHORITIES. 8. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IN THE CASE OF KUSUM HEALTHCARE PVT. LTD. VS. ACIT (SUPRA), WHEN THE REVENUE HAS APPEALED AGAINST THE ORDER OF ITA T IN THE SAID CASE, THE HONBLE HIGH COURT VIDE ITA NO. 765/2016, ORDER DATED 25/04/2017, HAS HELD AS UNDER: 8. AGGRIEVED BY THE SAID ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE ITAT. BY THE IMPUGNED ORDER DATED 31TH MARCH 2015, THE ITAT SET ASIDE THE ASSESSMENT ORDER. THE ITAT NOTED THAT THE ASSESSEE HAD UNDERTAKEN WORKING CAPITAL ADJUSTMENT FOR THE COMPARABLE COMPANIES SELECTED IN ITS TRANSFER PRICING REPORT. IT WAS FURTHER NOTED THAT THE DIFFERENTIAL IMPACT OF WORKING CAPITAL OF THE ASSESSEE VIS - - VIS ITS COMPARABLES HAD ALREADY BEEN FACTORED IN THE PRICING/PROFITABILITY WHICH WAS MORE THAN THE WORKING CAPITAL ADJUSTED MARGIN OF THE COMPARABLES AND, THEREFORE, ANY FURTHER ADJUSTMENT TO THE MARGINS OF THE ASSESSEE ON THE PRETEXT OF OUTSTANDING RECE IVABLES IS UNWARRANTED AND WHOLLY UNJUSTIFIED. 9. MR. RAGHVENDRA SINGH, LEARNED COUNSEL APPEARING FOR THE REVENUE SUBMITTED THAT THE ITAT OVERLOOKED THE FACT THAT THE EXPRESSION INTERNATIONAL TRANSACTION AS DEFINED IN EXPLANATION (I)(C) TO SECTION 92B OF THE ACT INCLUDED PAYMENTS OR DEFERRED PAYMENT OR RECEIVABLE OR ANY OTHER DEBT ARISING DURING THE COURSE OF BUSINESS, AND THEREFORE, THE OUTSTANDING RECEIVABLES COULD BY THEMSELVES CONSTITUTE AN INTERNATIONAL TRANSACTION. HE FURTHER REFERRED TO THE OCE D TRANSFER PRICING GUIDELINES FOR MULTINATIONAL ENTERPRISES AND TAX ADMINISTRATIONS. PARAS 3.48 & 3.49 UNDER CHAPTER III PARA A.6.1 OF THE SAID GUIDELINES TITLED DIFFERENT TYPES OF COMPARABILITY ADJUSTMENTS SPOKE OF THE NEED TO ELIMINATE DIFFERENCES THAT MAY ARISE FROM DIFFERENT ACCOUNTING PRACTICES BETWEEN CONTROLLED AND UNCONTROLLED TRANSACTIONS. IN PARTICULAR, IT WAS NOTED UNDER PARA 3.49 THAT A SIGNIFICANTLY DIFFERENT LEVEL OF RELATIVE WORKING CAPITAL BETWEEN THE CONTROLLED AND UNCONTROLLED PARTIES M AY RESULT IN FURTHER INVESTIGATION OF THE 7 ITA NO. 2082 /HYD/201 7 DHANUSH INFOTECH PVT. LTD., HYD. COMPARABILITY CHARACTERISTICS OF THE POTENTIAL COMPARABLE. MR. SINGH SUBMITTED THAT THE ITAT ERRED IN DISAGREEING WITH THE TPO, WHO HAD CHARACTERISED THE OUTSTANDING RECEIVABLES AS AN INTERNATIONAL TRANSACTION BY ITSELF WHICH REQUIRED BENCHMARKING. 10. THE COURT IS UNABLE TO AGREE WITH THE ABOVE SUBMISSIONS. THE INCLUSION IN THE EXPLANATION TO SECTION 92B OF THE ACT OF THE EXPRESSION RECEIVABLES DOES NOT MEAN THAT DE HORS THE CONTEXT EVERY ITEM OF RECEIVABLES APPEARING IN THE ACCOUNTS OF AN ENTITY, WHICH MAY HAVE DEALINGS WITH FOREIGN AES WOULD AUTOMATICALLY BE CHARACTERISED AS AN INTERNATIONAL TRANSACTION. THERE MAY BE A DELAY IN COLLECTION OF MONIES FOR SUPPLIES MADE, EVEN BEYOND THE AGREED LIMIT, DUE TO A VA RIETY OF FACTORS WHICH WILL HAVE TO BE INVESTIGATED ON A CASE TO CASE BASIS. IMPORTANTLY, THE IMPACT THIS WOULD HAVE ON THE WORKING CAPITAL OF THE ASSESSEE WILL HAVE TO BE STUDIED. IN OTHER WORDS, THERE HAS TO BE A PROPER INQUIRY BY THE TPO BY ANALYSING TH E STATISTICS OVER A PERIOD OF TIME TO DISCERN A PATTERN WHICH WOULD INDICATE THAT VIS - - VIS THE RECEIVABLES FOR THE SUPPLIES MADE TO AN AE, THE ARRANGEMENT REFLECTS AN INTERNATIONAL TRANSACTION INTENDED TO BENEFIT THE AE IN SOME WAY. 11. THE COURT FINDS T HAT THE ENTIRE FOCUS OF THE AO WAS ON JUST ONE AY AND THE FIGURE OF RECEIVABLES IN RELATION TO THAT AY CAN HARDLY REFLECT A PATTERN THAT WOULD JUSTIFY A TPO CONCLUDING THAT THE FIGURE OF RECEIVABLES BEYOND 180 DAYS CONSTITUTES AN INTERNATIONAL TRANSACTION BY ITSELF. WITH THE ASSESSEE HAVING ALREADY FACTORED IN THE IMPACT OF THE RECEIVABLES ON THE WORKING CAPITAL AND THEREBY ON ITS PRICING/PROFITABILITY VIS - - VIS THAT OF ITS COMPARABLES, ANY FURTHER ADJUSTMENT ONLY ON THE BASIS OF THE OUTSTANDING RECEIVABLES WOULD HAVE DISTORTED THE PICTURE AND RE - CHARACTERISED THE TRANSACTION. THIS WAS CLEARLY IMPERMISSIBLE IN LAW AS EXPLAINED BY THIS COURT IN CIT V. EKL APPLIANCES LTD. (2012) 345 ITR 241 (DELHI). 12. CONSEQUENTLY, THE COURT IS UNABLE TO FIND ANY ERROR IN T HE IMPUGNED ORDER OF THE ITAT GIVING RISE TO ANY SUBSTANTIAL QUESTION OF LAW FOR DETERMINATION. THE APPEAL IS, ACCORDINGLY, DISMISSED. RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE SAID CASE AS WELL AS THE DECISION OF THE COO RDINATE BENCHES OF HYDERABAD , WE SET ASIDE THE ORDER OF CIT(A) AND DIRECT THE AO TO DELETE THE INTEREST CHARGED ON THE OUTSTANDING RECEIVABLES. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 17 TH OCTOBER , 2018. SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 17 TH OCTOBER , 2 018. KV 8 ITA NO. 2082 /HYD/201 7 DHANUSH INFOTECH PVT. LTD., HYD. COPY TO: - 1) DHANUSH INFOTECH PVT. LTD., 1 - 8 - 448, 4 TH FLOOR, LAKSHMI BULDG., SP ROAD, BEGUMPET, SECUNDERABAD. 2) AC IT , CIRCLE 17(1), SIGNATURE TOWERS, HYD. 3) CIT(A) 5, HYDERABAD. 4) PR. CIT 5 HYD . 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE