Syniverse Technologies Services(india) Private Limited (Earlier known as Syniverse Mobile Solutions Private Limited ), Hyderabad V. Dy. Commissioner of Income Tax , Circle-3(2), Hyderabad

ITA 2339/Hyd/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 6523 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 07-01-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 19-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Keywords: Transfer pricing; International transaction
• Section: 143(3); 201; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 2339 /HYD/2018 ASSESSMENT YEAR: 201 4 - 15 SYNIVERSE TECHNOLOGIES SERVICES (INDIA) PRIVATE LIMITED (EARLIER KNOWN AS SYNIVERSE MOBILE SOLUTIONS PRIVATE LIMITED) HYDERABAD. [ PAN: A ANCS1158H ] VS DEPUTY CIT CIRCLE 3(2) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI ALIASGAR RAMPU R AWALA , A DV. FOR REVENUE : SHRI YVST SAI, CIT, DR DATE OF HEARING : 0 7 - 01 - 2021 DATE OF PRONOUNCEMENT : 1 9 - 01 - 2021 O R D E R PER BENCH : THIS ASSESSEES APPEAL FOR AY.201 4 - 15 ARISES FROM THE DY. CIT(A) - 3(2) , HYDERABADS ORDER DATED 19 - 12 - 2 017 IN AN ASSESSMENT FRAMED U/S 143(3) R.W.S. 144C(13) OF THE INCOME TAX ACT, 1961 [THE ACT IN SHORT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. ITA NO. 2339 /HYD/18 : - 2 - : 2 . THE ASSESSEES FIRST AND FOREMOST LEGAL CONTENTION RAISED DURING THE COURSE OF HEARING BEFORE US IS THAT THE INSTANT LIS CAN BE DISPOSED OF AS THE ASSESSMENT UNDER CHALLENGE DATED 29.10.2018 HAS BEEN FRAMED IN THE NAME OF A NON - EXISTENT ENTITY I.E. M/S SYNIVERSE MOBI LE SOLUTIONS PRIVATE LIMITED ; WHICH STOOD AMALGAMATED IN THE NAME AND STYLE OF M/S SYNIVERSE TECHNOLOGIES SERVICES (INDIA) PRIVATE LIMITED W.E.F. 24.11.2017 AS PER THE CORRESPONDING SCHEME APPROVED IN THE NATIONAL COMPANY LAW TRIBUNAL [NCLT]. 3 . THERE IS NO DISPUTE BETWEEN THE PARTIES THAT THE A SSESSING OFFICER HAS PASSED HIS DRAFT ASSESSMENT ORDER ON 19.12.2017 IN TUNE WITH THE T RANSFER P RICING O FFICERS ORDER DATED 31.10.2017 U/S 92CA(3) OF THE ACT PROPOSING ARMS LENGTH PRICE ADJUSTMENT RELAT ING TO ASSESSEES INTERNATIONAL TRANSACTIONS WITH ITS O VERSEAS ASSOCIATED ENTERPRISE [AE] IN THE RELEVANT PREVIOUS YEAR . THE ASSESSEE THEREAFTER FILED ITS OBJECTIONS BEFORE THE DISPUTE RESOLUTION PANEL [DRP ] ON 18.01.2018. L EARNED CIT, DR HAS BEEN FA IR ENOUGH IN NOT DISPUTING THE ASSESSEES CLINCHING CONTENTION THAT THE FACT OF FOREGOING AMALGAMATION SCHEME HA D BEEN DULY PLEADED BEFORE THE DRP. ITS DIRECTIONS DATED 14.09.2018 FINALLY CULMINATED IN ASSESSMENT ORDER DATED 29.10.2018 AGAIN IN THE AMA LGAMATING ENTIT YS NAME ONLY . IT IS IN THIS BACKDROP OF THE FACT S THAT MR. SAI VEHEMENTLY ARGUED THAT NO LEGAL OR FACTUAL FAULT COULD BE FOUND IN THE IMPUGNED ASSESSMENT FRAMED AS PER DRPS DIRECTIONS ENSURING COMPLIANCE OF SEC.144C(10) OF THE ACT ONL Y. ITA NO. 2339 /HYD/18 : - 3 - : 4 . AFTER GIVING OUR FINAL CONSIDERATION TO THE FOREGOING RIVAL CONTENTIONS ON THE INSTANT LEGAL ISSUE OF VALIDITY OF THE ASSESSMENT IN QUESTION, WE FIND NO MERIT IN R EVENUES FOREGOING STAND. HONBLE APEX COURTS DECISION IN PCIT VS. MARUTI SUZUKI INDIA LTD. (2019) 416 ITR 613 (SC) MAKES IT CLEAR THAT AN ASSESSMENT FRAMED IN THE NAME OF A NON - EXISTING ENTITY IS A NULLITY. WE DRAW SUPPORT THEREFROM TO CO N CLUDE THAT ASSESSMENT BEFORE US ; EVEN IF IT IS FRAMED AS PER DRPS DIRECTIONS U/S 144 C(10) OF THE ACT WOULD NOT STAND VALIDATED SINCE IT HAS BEEN INDEED PASSED ON A NON - EXISTING ENTITY ONLY. WE THUS QUASH THE SAME AS NOT SUSTAINABLE. REMAINING PLEADINGS ON MERITS IN THIS INSTANT APPEAL ARE RENDERED INFRUCTUOUS. 6. THE ASSESSEE S APPEAL IS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 1 9 TH JANUARY, 2021 . SD/ - SD/ - (LAXMI PRASAD SAHU) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 19 - 01 - 2021 GMV ITA NO. 2339 /HYD/18 : - 4 - : COPY TO : 1. SYNIVERSE TECHNOLOGIES SERVICES (INDIA ) PRIVATE LTD., 9 TH FLOOR, PLOT NO.18, I LABS TECHNOLOGY CENTRE, HI - TECH CITY, SOFTWARE UNITS LAYOUT, MADHAPUR, HYDERABAD 500 081 . 2.THE DY.CIT, CIRCLE 3(2), HYDERABAD . 3.CIT(APPEALS) - 3 , HYDERABAD. 4.THE PR.CIT - 3 , HYDERABAD. 5. DISPUTE RESOLUTION PANEL - 1, KENDRIYASADAN, 4 TH FLOOR, C WING, BENGALURU 560 034. 6. D.R. ITAT, HYDERABAD. 7 .GUARD FILE.