JVP Soft Private Limited, Hyderabad V. Income Tax Officer, Ward-2(1), Hyderabad

ITA 2180/Hyd/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3003 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 04-05-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 20-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJENDRA PRASAD
• Keywords: Transfer pricing; International transaction
• Section: 92E; 143(1); 80IA; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 2180 /HYD./ 2017 ASSESSMENT YEAR: 20 1 1 - 12 M/S JVP SOFT PRIVATE LIMITED VS ITO, WARD 2 ( 1 ) HYDERABAD HYDERABAD [PAN: AAACJ5094J ] (APPELLANT) (RESPONDENT) FOR ASSESSEE: SHRI RAJENDRA PRASAD, A R . FOR REVENUE: SHRI SUNIL KUMAR PANDEY, D.R. DATE OF HEARING : 0 4 /05/2021 DATE OF PRONOUNCEMENT : 17 /0 6 /2021 O R D E R PER L.P. SAHU, A.M. THIS APPEAL OF ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - 1 1 , HYDERABAD DATED 0 7.11.2017 CHALLENGING FOR NOT GRANTING RELIEF BY THE CIT(A) AGAINST THE ORDER PASSED U/S 154 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 20.06.2013 BY THE ASSESSING OFFICER. 2. THE ASSESSEE FILED HIS RETURN OF INCOME ON 05.10.2011 DECLARING GROSS TOTAL INCOME OF RS.5,84,93,561/ - AND CLAIMED DEDUCTION U/S 80 IA ( 4)(I) OF RS. 3,60,31 , 451/ - IN THE RETURN OF INCOME FILED BY TH E ASSESSEE IN ITR 6 P ARA ITA NO. 2180 /HYD/ 2017 JVP SOFT PRIVATE LTD AY 2011 - 12 2 A GENERAL IN AUDIT INFORMATION UNDER THE HEAD ARE YOU LIABLE TO FURNISH A REPORT U/S 92E N. THE RETURN WAS PROCESSED U/S 143(1) OF THE ACT ON 05.03.2013 ON THE RETURNED INCOME DECLARED BY THE ASSESSEE AND DID NOT GIVE BENEFIT O F DEDUCTION UNDER CHAPTER VI A OF THE ACT AS PER THE INTIMATION LETTER THE DUE DATE OF FILING THE RETURN IS SHOWN 30 . 09.2011. AGAINST THE INTIMATION U/S 143(1) RECEIVED BY THE ASSESSEE ON 08.03.2013 HE FILED RECTIFICATION APPLICATION ON 26.04 . 2013 BEFORE THE ASSESSING OFFICER. THE ASSESSING OFFICER HAS PASSED HIS ORDER ON 20.06.2013 BY REJECTING THE CLAIM OF THE ASSESSEE. AGAINST THE ORDER U/S 154 OF THE ACT, THE ASSESSEE APPEARED BEFORE THE CIT(A) AND THE CIT(A) AFTER DETAILED DISCUSSION PASSED HIS ORD ER AND DISMISSED THE APPEAL OF THE ASSESSEE. BEING AGGRIEVED FROM THE ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US. 3. THE LD.AR AT THE OUTSET OF THE HEARING SUBMITTED THAT HE DOES NOT PRESS GROUND NO.9. HE FURTHER SUBMITTED THAT BY MISTA KE THE AUDIT INFORMATION COLUMN WAS WRONGLY FILLED N. THE ASSESSEE WAS INVOLVED IN INTERNATIONAL TRANSACTION AND FORM 3 CEB REPORT DATED 22.10.2011 WAS OBTAINED FROM A CHARTERED ACCOUNTANT . THE DUE DATE FOR FILING OF RETURN WAS 30 . 11.2011 AND FORM NO 10 CEB WAS ALSO OBTAINED BY THE ASSESSEE ON 05.09.2011 FROM A CHARTERED ACCOUNTANT BEFORE FILING THE RETURN OF INCOME. THERE WAS A APPARENT MISTAKE ON THE RECORD FOR NOT GRANTING THE DEDUCTION U/S 80 IA(4) OF THE ACT IN SUPPORT OF HIS ARGUMENT HE RELIED ON A NUMBER OF JUDGEMENTS WHICH WERE PLACED ON RECORD . HE ALSO TOOK ALTERNATE PLEA THAT THE ISSUE MAY KINDLY BE RESTORED TO THE ASSESSING OFFICER FOR FINDING OF FACTS AND HE SUBMITTED THAT THIS IS THE 8 TH YEAR OF GETTING DEDUCTION U/S 80 IA(4). 4. ON THE OTHER HAND LD.DR RELIED ON THE ORDER OF LOWER AUTHORITIES AND SUBMITTED THAT THERE WAS NO MISTAKE N RECORD; THE RETURN WAS PROCESSED AS PER THE INFORMATION AVAILABLE ON THE RETURN FILED BY THE ASSESSEE HAD IT BEEN DISCLOSED BY THE ASSESSEE REGARDING FORM NO.3 CEB THE MATTER MAY HAVE BEEN ITA NO. 2180 /HYD/ 2017 JVP SOFT PRIVATE LTD AY 2011 - 12 3 DIFFERENT. THE ASSESSEE FILED RETURN AFTER DUE DATE, THEREFORE, HE IS NOT ELIGIBLE FOR DEDUCTION U/S 80IA (4) AS CLAIMED BY THE ASSESSEE . 5. AFTER HEARING BOTH THE SIDES AND PERUSING THE ENTIRE MATERIAL ON RECORD A ND ORDERS OF THE AUTHORITIES BELOW, AND ARGUMENTS ADVANCED BY BOTH SIDES, THERE IS NO DOUBT THAT THE ASSESSEE HAS SUPPRESSED THE FACTS OF HIS ACTIVITY AND FILED RETURN OF INCOME BEFORE OBTAINING REPORT IN PRESCRIBED FORM NO. 3 CEB DATED 22.10.2011. SINCE THIS IS THE 8 TH YEAR FOR CLAIMING DEDUCTION U/S 80 IA (4) OF THE ACT , C ONSIDERING THE SUBMISSIONS FROM BOTH THE SIDES WE REMIT THIS ISSUE BACK TO THE FILE OF ASSESSING OFFICER FOR DE - NOVO ASSESSMENT. NEEDLESS TO SAY THAT THE ASSESSEE SHALL BE GIVEN A REASONABLE OPPORTUNITY OF HEARING. ASSESSEE IS DIRECTED NOT TO SEEK UNNEC ESSARY ADJOURNMENTS, AND APPEAR BEFORE THE ASSESSING OFFICER ON OR BEFORE 30.09.2021 WITHIN THREE EFFECTIVE OPPORTUNITIES AT ASSESSEES OWN RISK AND RESPONSIBILITY. 6 . T HIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERM S . ORDER PRONOUNCED ON 17 / 06 /2021. SD/ - SD/ - (P. MADHAVI DEVI ) ( L.P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 17 TH JUNE, 2021 *GMV ITA NO. 2180 /HYD/ 2017 JVP SOFT PRIVATE LTD AY 2011 - 12 4 COPY OF ORDER FORWARDED TO: 1. M/S JVP SOFT PRIVATE LTD., C/O SAMUEL NAGADESI, CHARTERED ACCOUNTANT, 408, SRI RAMAKRISHNA TOWERS, BESIDES IMAGE HOS PITALS, AMEERPET, HYDERABAD 500 073 , TELANGANA 2. ITO, WARD 2 ( 1 ), HYDERABAD 3. A CIT, RANGE 2 , HYDERABAD. 4. CIT(A) - 1 1, HYDERABAD 5. PR.CIT - 2, HYDERABAD. 6. D.R. ITAT HYDERABAD 7. GUARD FILE