Appeal details
Counselvise Citation
[2018] 126 COUNSELVISE.COM (IT) 2397 (ITAT-HYDERABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 year(s) 21 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
23-03-2018
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
B
Next Hearing Date
22-03-2018
Assessment Year
2010-2011
Appeal Filed On
04-03-2015
Judgement Text
ITA NO 213 OF 2015 FACTSET SY STEMS INDIA P LTD HYDERABAD. PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER ITA NO.213/HYD/2015 (ASSESSMENT YEAR: 2010-11) FACTSET SYSTEMS INDIA PRIVATE LIMITED, HYDERABAD PAN: AABCF 1445 Q VS ACIT, CIRCLE 17 ( 1 ) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI VAIBHAV MEHTA FOR REVENUE : SHRI K.SRINIVAS REDDY, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2010-11 AGAIN ST THE ASSESSMENT ORDER PASSED BY THE AO U/S 143(3) R. W.S 144C (1) OF THE ACT. THE ASSESSEE HAS RAISED FOUR GROUNDS OF APPEAL. 1. GROUND NO.1 IS GENERAL IN NATURE, HENCE NEED NO ADJUDICATION. 2. GROUND NO.2 AND SUB-GROUNDS THEREUNDER, ARE ALL AGAINST THE T.P. ADJUSTMENT MADE BY THE AO. ON 20.0 3.2018, THE ASSESSEE HAS FILED A LETTER DATED 14.03.2018 WHICH READS AS UNDER: DATE OF HEARING: 21.03 . 201 8 DATE OF PRONOUNCEMENT: 23.03.2018 ITA NO 213 OF 2015 FACTSET SY STEMS INDIA P LTD HYDERABAD. PAGE 2 OF 5 FACTSET SEE THE ADVANTAGE 14 MARCH 2018 THE HON'BLE 'B' BENCH MEMBERS THE INCOME TAX APPELLATE TRIBUNAL, ROOM NO. 502, & 505, 5TH FLOOR, CGO TOWERS, KAVADIGUDA, SECUNDERABAD. DEAR SIR, APPELLANT : FACTSET SYSTEMS INDIA PRIVATE LIMITED ('THE APPELLANT') PAN : AABCF1445Q ASSESSMENT YEAR : 2010-11 SUBJECT : ADJOURNMENT OF APPEAL FILED UNDER SECTION 253(1 )(D) OF THE INCOME-TAX ACT, 1961 ('THE ACT') - REQUEST REFERENCE : ITA NO. 213/HYD-2015 THIS IS WITH REFERENCE TO THE CAPTIONED APPEAL POST ED FOR HEARING BEFORE YOUR HONOURS ON 20 MARCH 2018. IN THIS CONNECTION, WE WOULD LIKE TO BRING TO YOUR HONOURS NOTICE THAT THE APPELLANT HAD FILED AN APPLICATION BEFORE THE DIRECTOR GENERAL OF INCOME T AX, NEW DELHI ['INDIAN ADVANCE PRICING AGREEMENT ('APA' ) AUTHORITIES'] FOR DETERMINATION OF ARM'S LENGTH PRI CE ('ALP') FOR THE PROPOSED COVERED TRANSACTIONS FOR T HE FINANCIAL YEARS 2013-14 TO 2017-18 ON 30 MARCH 2013. SUBSEQUENTLY, THE CENTRAL BOARD OF DIRECT TAXES NOTIFIED ROLL BACK PROVISIONS FOR APA PROGRAMME VIDE NOTIFICATION NO. S.O. 758(E) DATED 1 4 MARCH 2015 (ATTACHED AS ENCLOSURE 1). THE ROLL BACK PROVISIONS ARE APPLICABLE FOR THE PREVIOUS FOUR YEA RS, PRECEDING YEARS FOR WHICH THE APA APPLICATION IS MADE. THE PRECEDING FOUR PREVIOUS YEARS FOR THE APPELLANT ARE FINANCIAL YEARS 2009-10, 2010-11, 2011-12 AND 2012-13. CONSIDERING THE SAME, THE APPELLANT OPTED FOR AN APPLICATION OF ROLL BACK PROVISIONS FOR THE FINANCIAL YEARS 2009-10, 2010-11 , 2011-12 AND 2012-13. THE APPELLANT SUBMITS THAT THE CAPTIONED APPEAL BEFORE THE APPELLATE TRIBUNAL FOR THE FINANCIAL YEA R 2009-10 RELEVANT TO AY 2010-11 IS SCHEDULED FOR THE HEARING ON 20 MARCH 2018. ITA NO 213 OF 2015 FACTSET SY STEMS INDIA P LTD HYDERABAD. PAGE 3 OF 5 IN THIS REGARD, THE APPELLANT WOULD LIKE TO SUBMIT THAT THE APA APPLICATION FILED BY THE APPELLANT, INCLUDING THE ROLL-BACK APPLICATION, IS CONCLUDED BETWEEN THE APPELLANT AND THE APA AUTHORITIES ON 23 FEBRUARY 2018. PURSUANT TO THE APA, THE APPELLANT I S OBLIGATED TO FILE MODIFIED RETURN OF INCOME ('ROI') UNDER SECTION 92CD OF THE INCOME-TAX ACT, 1961 ('AC T') READ WITH RULE 10RA OF THE RULES FOR THE AYS 2010- 11 TO 2017-18. THE SAID RULE MANDATES THE ASSESSEE TO WITHDRAW THE APPEALS PENDING BEFORE THE APPELLATE AUTHORITIES BEFORE FILING THE MODIFIED RO LS. RELEVANT EXTRACT OF RULE 1 ORA IS GIVEN BELOW FOR EASY REFERENCE: 10RA - PROCEDURE FOR GIVING EFFECT TO ROLL BACK PROVISION OF AN AGREEMENT '1 ORA (4). IF ANY APPEAL FILED BY THE APPLICANT IS PENDING BEFORE THE COMMISSIONER (APPEALS), APPELLATE TRIBUNAL OR THE HIGH COURT FOR A ROLLBACK YEAR, ON THE ISSUE WHICH IS THE SUBJECT MATTER OF T HE ROLLBACK PROVISION FOR THAT YEAR, THE SAID APPEAL T O THE EXTENT OF THE SUBJECT COVERED UNDER THE AGREEME NT SHALL BE WITHDRAWN BY THE APPLICANT BEFORE FURNISHING THE MODIFIED RETURN FOR THE SAID YEAR. ' THE APPELLANT APPROACHES YOUR HONOURS TO PROVIDE A SHORT ADJOURNMENT TILL THE APPELLANT FILES A WITHDRAWAL LETTER BEFORE THE VARIOUS TAX AUTHORITIE S WHEREIN THE PROCEEDINGS ARE PENDING FOR AY 2010-11 TO THE EXTENT OF THE SUBJECT COVERED UNDER THE APA. YOURS FAITHFULLY FOR FACTSET SYSTEMS INDIA PRIVATE LIMITED SD/- VENKATA RAMA BHASKARA RAO SANNIDHI AUTHORIZED SIGNATORY CC: SENIOR DEPARTMENTAL REPRESENTATIVE, BENCH B, THE INCOME TAX APPELLATE TRIBUNAL, HYDERABAD 3. THE LEARNED COUNSEL FOR THE ASSESSEE THEREFORE, SOUGHT WITHDRAWAL OF THE GROUNDS AGAINST THE TP ADJUSTMENT . TAKING THE SAME INTO CONSIDERATION, GROUND NO.2 IS REJECTED AS WITHDRAWN. ITA NO 213 OF 2015 FACTSET SY STEMS INDIA P LTD HYDERABAD. PAGE 4 OF 5 4. AS REGARDS GROUNDS NO.3, WE FIND THAT IT IS FOR EXCLUSION OF COMMUNICATION EXPENSES AND INTERNET EX PENSES FROM THE EXPORT TURNOVER AS WELL AS TOTAL TURNOVER FOR T HE PURPOSE OF COMPUTING THE DEDUCTION U/S 10AA OF THE ACT. WE FIN D THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY VARIO US DECISIONS OF THE TRIBUNAL AND ALSO THE HON'BLE KARNATAKA HIGH CO URT IN THE CASE OF CIT VS. TATA ELXSI LTD IN ITA NO.261 OF 201 4 DATED 23.09.2014. RESPECTFULLY FOLLOWING THE SAME, WE DIR ECT THE AO TO EXCLUDE THE COMMUNICATION EXPENSES AS WELL AS INTER NET EXPENSES BOTH FROM THE EXPORT TURNOVER AS WELL AS TOTAL TURN OVER FOR THE PURPOSE OF COMPUTING THE DEDUCTION U/S 10AA OF THE ACT. GROUND NO.3 IS ACCORDINGLY ALLOWED. 5. AS REGARDS GROUND NO.4 AGAINST THE LEVY OF INTER EST U/S 234B OF THE ACT IS CONCERNED, WE FIND THAT IT I S CONSEQUENTIAL IN NATURE AND THEREFORE, THE AO IS DIRECTED TO GIVE CONSEQUENTIAL RELIEF, IF ANY TO THE ASSESSEE AND THIS GROUND OF A PPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD MARCH, 2018. SD/- SD/- (D.S.SUNDER SINGH) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 23 RD MARCH 2018. VINODAN/SPS ITA NO 213 OF 2015 FACTSET SY STEMS INDIA P LTD HYDERABAD. PAGE 5 OF 5 COPY TO: 1 FACTSET SYSTEMS INDIA (P) LTD, 5 TH FLOOR, BLOCK 3, DLF CYBER CITY, PLOT NO.129 TO 132, OPP: APHB COLONY, GACHIBOWLI, H YDERABAD 500034 2 ASSTT. CIT, CIRCLE 17(1) HYDERABAD 3 DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) I T TOWERS, 10-2-3 A C GUARDS, HYDERABAD 500004 4 CIT-1 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER
