A.C.I.T.,Circle-2(1), Kolkata V. M/s pricewarerhousecoopers Service Delivery Centre (Kolkata) Private Limited , Kolkata

ITA 210/KOL/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7850 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 22-07-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 17-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing; International transaction
• Section: 250; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA C BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, HONBLE ACCOUNTANT MEMBER & SRI ABY T. VARKEY, HONBLE JUDICIAL MEMBER) [VIRTUAL COURT HEARING] ITA NO. 210/KOL/2020 ASSESSMENT YEARS: 2014-15 ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-2(1), KOLKATA.......................APPELLANT VS. M/S. PRICEWATERHOUSECOOPERS DELIVERY CENTRE (KOLKATA) PVT. LTD......RESPONDENT PLOT X1-1, BLOCK EP SECTOR-V, SOUTH CITY PINNACLE SALT LAKE NORTH 24 PARGANAS 700 091 [PAN : AADCG 7191 E] APPEARANCES BY: SHRI IMOKABA JAMIR, CIT D/R, APPEARING ON BEHALF OF THE REVENUE. SHRI RAVI SHARMA, A/R, APPEARED ON BEHALF OF THE ASSESSEE. DATE OF CONCLUDING THE HEARING : JULY 22 ND , 2020 DATE OF PRONOUNCING THE ORDER : AUGUST 19 TH , 2020 ORDER PER J. SUDHAKAR REDDY, AM :- THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 22, KOLKATA, (HEREINAFTER THE LD.CIT(A)), PASSED U/S. 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 18/10/2019, FOR THE ASSESSMENT YEAR 2014-15. 2. AT THE OUTSET WE FIND THAT THERE IS A DELAY OF 41 (FORTY ONE) DAYS IN FILING OF THIS APPEAL BY THE ASSESSEE. AFTER PERUSING THE PETITION FOR CONDONATION, WE ARE CONVINCED THAT THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE FROM FILING THE APPEAL IN TIME. HENCE THE DELAY IS CONDONED AND THE APPEAL IS ADMITTED. 3. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT AN UNILATERAL ADVANCE PRICING AGREEMENT (UAPA) HAS BEEN ENTERED INTO BY THE ASSESSEE WITH CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, ON 3 RD DECEMBER, 2019 AND HENCE THE REVENUE IS BOUND TO WITHDRAW THIS APPEAL. 4. THE LD. D/R SOUGHT TIME OF ONE WEEK TO VERIFY THIS STATEMENT OF THE ASSESSEE. 5. AFTER HEARING RIVAL CONTENTIONS, WE FIND THAT THE ASSESSEE HAS FILED A COPY OF THE UAPA U/S 92CC OF THE ACT DT. 3 RD DECEMBER, 2019, ENTERED INTO WITH CBDT. PAGE 5 PARA 2 & 3 OF THE AGREEMENT IS EXTRACTED FOR READY REFERENCE:- 2. THE TERM OF AGREEMENT THE AGREEMENT SHALL APPLY IN RESPECT TO FIVE CONSECUTIVE YEARS PREVIOUS YEAR 2017 - TO 2022- 23 {HEREINAFTER REFERRED TO AS APA YEARS} THE AGREEMENT SHALL ALSO APPLY TO CONSECUTIVE FOUR PREVIOUS YEARS THAT IS, PREVIOUS YEAR 2013-14 TO PR EVIOUS YEAR 2016 18) {HEREINAFTER REFERRED TO AS ROLLBACK YEARS} 3. COVERED TRANSACTIONS THE INTERNATIONAL TRANSACTIONS BETWEEN THE APPLICANT AND ITS AES OF: (I) RENDERING OF INFORMATION TECHNOLOGY ENABLED S REFERRED TO AS ITES)); (II) RECEIPT OF SERVICES FROM AE RELATED TO THE TRANSACTION MENTIONED IN ITEM (I) ABOVE; AND (III) REIMBURSEMENT AND RECOVERY OF EXPENSES RELATED TO ITEM (I) ABOVE; SHALL BE THE COVERED TRANSACTIONS FOR THE AGREEMENT AND THIS AGREEMENT SHALL APPLY TO THESE INTERNATIONAL TRANSACTIONS. THE AES WITH WHOM THE APPLICANT SHALL ENTER INTO THESE INTERNATIONAL TRANSACTIONS ARE DETAILED IN APPENDIX I(A). 6. THIS BENCH HAS GRANTED SUBMISSIONS OF THE ASSESSEE. TO CONTROVERT THE ARGUMENTS OF THE LD. COUNSEL FOR THE ASSESSEE, PERUSAL OF THE COPY OF THE UAPA WITHDRAW THIS APPEAL, WE DISMISS THIS APPEAL AS WITHDRAWN. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. KOLKATA, THE SD/- [ ABY T. VARKEY] JUDICIAL MEMBER DATED : 19.08.2020 {SC SPS} 2 M/S. PRICEWATERHOUSECOOPERS DELIVERY CENTRE (KOLKATA) PVT. LTD THE TERM OF AGREEMENT THE AGREEMENT SHALL APPLY IN RESPECT TO FIVE CONSECUTIVE YEARS - 18 TO PREVIOUS YEAR 2021- 22 (RELEVANT TO ASSESSMENT YEARS 2018 23 {HEREINAFTER REFERRED TO AS APA YEARS} THE AGREEMENT SHALL ALSO APPLY TO CONSECUTIVE FOUR PREVIOUS YEARS THAT IS, PREVIOUS EVIOUS YEAR 2016 - 17 (RELEVANT TO ASSESSMENT YEARS 2014 18) {HEREINAFTER REFERRED TO AS ROLLBACK YEARS} COVERED TRANSACTIONS THE INTERNATIONAL TRANSACTIONS BETWEEN THE APPLICANT AND ITS AES OF: RENDERING OF INFORMATION TECHNOLOGY ENABLED S UPPORT SERVICE (HEREINAFTER REFERRED TO AS ITES)); RECEIPT OF SERVICES FROM AE RELATED TO THE TRANSACTION MENTIONED IN ITEM (I) REIMBURSEMENT AND RECOVERY OF EXPENSES RELATED TO ITEM (I) ABOVE; SHALL BE THE COVERED TRANSACTIONS FOR THE AGREEMENT AND THIS AGREEMENT SHALL APPLY TO THESE INTERNATIONAL TRANSACTIONS. THE AES WITH WHOM THE APPLICANT SHALL ENTER INTO THESE INTERNATIONAL TRANSACTIONS ARE DETAILED IN APPENDIX I(A). GRANTED ONE WEEK TIME TO THE LD. D/R TO RESPOND TO THE SUBMISSIONS OF THE ASSESSEE. AS NO ADVERSE SUBMISSIONS HAVE BEEN MADE BY THE LD. D/R TO CONTROVERT THE ARGUMENTS OF THE LD. COUNSEL FOR THE ASSESSEE, TILL DATE AND AS ON PERUSAL OF THE COPY OF THE UAPA , WE ARE CONVINCED THAT THE REVENUE IS REQUIRED TO WITHDRAW THIS APPEAL, WE DISMISS THIS APPEAL AS WITHDRAWN. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. KOLKATA, THE 19 TH DAY OF AUGUST, 2020. [ J. SUDHAKAR ACCOUNTANT MEMBER ITA NO. 210/KOL/2020 ASSESSMENT YEARS: 2014-15 M/S. PRICEWATERHOUSECOOPERS DELIVERY CENTRE (KOLKATA) PVT. LTD . THE AGREEMENT SHALL APPLY IN RESPECT TO FIVE CONSECUTIVE YEARS COMMENCING FROM 22 (RELEVANT TO ASSESSMENT YEARS 2018 -19 THE AGREEMENT SHALL ALSO APPLY TO CONSECUTIVE FOUR PREVIOUS YEARS THAT IS, PREVIOUS 17 (RELEVANT TO ASSESSMENT YEARS 2014 -15 TO 2017- THE INTERNATIONAL TRANSACTIONS BETWEEN THE APPLICANT AND ITS AES OF: UPPORT SERVICE (HEREINAFTER RECEIPT OF SERVICES FROM AE RELATED TO THE TRANSACTION MENTIONED IN ITEM (I) REIMBURSEMENT AND RECOVERY OF EXPENSES RELATED TO ITEM (I) ABOVE; SHALL BE THE COVERED TRANSACTIONS FOR THE AGREEMENT AND THIS AGREEMENT SHALL APPLY TO THESE INTERNATIONAL TRANSACTIONS. THE AES WITH WHOM THE APPLICANT SHALL ENTER INTO ONE WEEK TIME TO THE LD. D/R TO RESPOND TO THE MADE BY THE LD. D/R TILL DATE AND AS ON , WE ARE CONVINCED THAT THE REVENUE IS REQUIRED TO SD/- J. SUDHAKAR REDDY ] ACCOUNTANT MEMBER COPY OF THE ORDER FORWARDED TO: 1. M/S. PRICEWATERHOUSECOOPERS DELIVERY CENTRE (KOLKATA) PVT. LTD PLOT X1-1, BLOCK EP SECTOR-V, SOUTH CITY PINNACLE SALT LAKE NORTH 24 PARGANAS 700 091 2. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 3 M/S. PRICEWATERHOUSECOOPERS DELIVERY CENTRE (KOLKATA) PVT. LTD M/S. PRICEWATERHOUSECOOPERS DELIVERY CENTRE (KOLKATA) PVT. LTD 700 091 ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE -2(1), KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES ITA NO. 210/KOL/2020 ASSESSMENT YEARS: 2014-15 M/S. PRICEWATERHOUSECOOPERS DELIVERY CENTRE (KOLKATA) PVT. LTD . TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES