Sutherland Healthcare Solutions Private Limited(Formerly known as Apollo Health Street Ltd)Hyderabad, Hyderabad V. Deputy Commissioner of Income Tax, Circle-3(2), Hyderabad

ITA 2204/Hyd/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5289 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 22-02-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 22-12-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Keywords: Transfer pricing; International transaction
• Section: 143(3); 201; 13; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH A HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 2204/HYD./2017 ASSESSMENT YEAR : 2013 - 14 SUTHERLAND HEALTHCARE SOLUTIONS LTD. (FORMERLY KNOWN AS APOLLO HEALTH STREET LTD. ) VS. DY.CIT, CIRCLE 3(2) HYDERABAD HYDERABAD [PAN: AADCA 4278N ] (APPELLANT) (RESPONDENT) FOR ASSESSEE: SRI ASHIK SHAH, AR FOR REVENUE: SMT. NIVEDITA BISWAS, D .R. DATE OF HEARING : 22 /02/2021 DATE OF PRONOUNCEMENT : 04 /0 5 /2021 O R D E R PER S.S. GODARA, J.M. TH IS ASSESSEES APPEAL FOR AY 201 3 - 14 IS DIRECTED AGAINST THE DY.CIT, CIRCLE - 3(2) , ORDER DATED 25.10.2017 FRAMED IN FURTHERANCE TO THE DRP - 1, BANGALORES DIRECTIONS DATED 09.09.2017 IN CASE NO. 325 /2016 - 17 , INVOLVING PROCEEDINGS U/S 143(3) R.W.S.144C(13) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HEARD BOTH PART IES. CASE FILE PERUSED. ITA 2204/H/2017 AY 2013 - 14 SUTHERLAND HEALTHCARE SOLUTIONS P LTD. VS. DY.CIT, CIRCLE 3(2), HYD. 2 2. THE ASSESSEES FIRST AND FOREMOST GRIEVANCE RAISED IN THE INSTANT LIS CHALLENGES THE CORRECTNESS OF LOWER AUTHORITIES ACTION MAKING ARMS LENGTH PRICE ADJUSTMENT OF RS. 2,73, 14,942/ - REGARDING ITS INTERNATIONAL TRANSACTIONS WITH O VERSEAS A.ES RELATING TO PROVISION OF BPO SERVICES. LEARNED COUNSELS ONLY CASE DURING THE COURSE OF HEARING IS THAT THE ASSESSEE WOULD NOT BE PRESSING FOR 2 ND TO 11 TH GROUND S CHALLENGING IMPUGNED ADJUSTME NT OF VARIOUS COMPARABLES IN CASE ONE OF THE SAID ENTITY (IES) ONE OF THE COMPARABLE ADOPTED BY THE TPO NAMELY M/S HARTRON COMMUNICATIONS LTD. HAS DIRECTED TO BE EXCLUDED . WE NOTICE IN THIS FAC TUAL BACKDROP THAT THIS TRIBUNALS COORDINATE BENCH S DECISION IN S&P CAPITAL IQ ( INDIA ) PVT.LTD. VS. DY.CIT (201 9 ) 106 TAXMAN.COM 116 (HYDERABAD) HOLDS IN THE VERY A.Y. 2013 - 14 THAT M /S HARTRON COMMUNICATIONS FINANCIAL RESULTS COULD N OT BE CONSIDERED FOR THE REASON THAT IT HAD WITNESSED INCREASE/DECREAS E IN REVENUE GENERATION AND EXCEPTIONAL PERFORMANCE DURING THE RELEVANT PREVIOUS YEAR . THIS CLINCHING FACT HAS GONE UNREBUTTED FROM DEPARTMENT AL SIDE . W E THUS DIRECT THE TPO TO EXCLUDE M/S H ARTRON COMMUNICATIONS LTD FROM THE ARRAY OF COMPARABLES IN ASSESSEES CASE. IT HAS FURTHER BEEN HIGHLIGHTED BEFORE US THAT SUCCEEDING A.Y. 2014 - 15 HAS ALREADY SEEN SIMILAR EXCLUSION OF THE VERY ENTITY AT THE TPOS END ITSELF, HE SHALL THEREFORE E XAMINE THE FOREGOING EXCLU SION IN THE VERY LINES. THE ASS ESSEES 2 ND TO 11 TH SUBSTANTIVE GROUNDS ARE PARTLY ACCEPTED FOR STATISTICAL PURPOSES IN ABOVE TERMS. ALL OTHER PLEADINGS ON MERITS QUA THIS FORMER ISSUE ARE RENDERED INFRUCTUOUS. 3. NEXT COMES THE LATTER ISSUE OF ALP OF RS. 61,33, 416/ - ON THE SHAREHOLDERS CORPORATE GUARANTEE PROVIDED TO THE BANK CALCULATED @ 13% IN LEARNED LOWER AUTHORITIES RESPECTIVE ORDERS. WE NOTICE HEREIN AS WELL THAT THE INSTANT LATTER ISSUE IS NO MORE RES INTEGRA AS T HE TRIBUNAL S DECISION IN ITA 213/HYD/ 2017 AND 505/HYD/2016 FOR 2012 - 13 AND 2011 - 12 RESPECTIVELY; BOTH DECIDED ON 11.3.2020 HAVE DIRECTED THE TPO TO ADOPT 0.92% ONLY AS THE CORPORATE GUARANTEE COMMISSION . WE THUS ADOPT JUDICIAL CONSISTENCY IN THESE ITA 2204/H/2017 AY 2013 - 14 SUTHERLAND HEALTHCARE SOLUTIONS P LTD. VS. DY.CIT, CIRCLE 3(2), HYD. 3 FACTS AND CIRCUMSTANCES TO ADOPT THE VERY SAME COURSE OF ACTION HEREIN AS WELL . NECESSARY COMPUTATION SHALL FOLLOW AS PER LAW. THIS A SSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. PRONOUNCED IN OPEN COURT ON 04 TH MAY, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 04 TH MAY, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. M/S SUTHERLAND HEALTHCARE SOLUTIONS PRIVATE LIMITED (FORMERLY KNOWN AS APOLLO HEALTH STREET LTD. ) UNIT II, SURVEY NO. 185(P) 2 ND & 3 RD FLOORS, KALAJYOTHI PROCESS, KONDAPUR , SERILINGAMPALL I, HYDERABAD 500 084, TELANGANA. 2. DY.CIT, CIRCLE 3(2), HYDERABAD. 3 . DRP - 1 , BENGALURU . 4 . DIT (IT & TP) , HYDERABAD . 5. ACIT (TP), HYDERABAD . 6. DR, ITAT, HYDERABAD. 7 . GUARD FILE.