M/s. Micro Focus Software India Private Limited, Bangalore V. Joint Commissioner Of Income Tax, Circle- 4(1)(2), Bangalore

ITA 2619/BANG/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1187 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 24-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VAIDEHI G
• Keywords: Transfer pricing; International transaction
• Section: 143(3); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER IT(TP)A NO.2619/BANG/2019 ASSESSMENT Y EAR : 2015 - 16 M/S. MICRO FOCUS SOFTWARE INDIA PVT. LTD., 65/2, LAUREL BLOCK D, BAGMANE TECH PARK, C. V. RAMAN NAGAR, BYRASANDRA, BANGALORE 560 093. PAN : AAACN 6992 K VS. THE JOINT COMMISSIONER OF INCOME TAX, CIRCLE 4(1)(2), BANGALORE. ASSESSEE BY : SMT. VAIDEHI G, CA REVENUE BY : NONE DATE OF HEARING : 1 4 . 12 .20 20 DATE OF PRONOUNCEMENT : 16 . 1 2 .20 20 O R D E R PER N. V. VASUDEVAN, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE FINAL ORDER OF ASSESSMENT DATED 31.10.2019 PASSED UNDER SECTION 143(3) R.W.S. 144C(13) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED THE ACT) BY THE JCIT, CIRCLE 4(1)(2), BANGALORE, RELATING TO ASSESSMENT YEAR 2015-16. 2. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUES RAISED BY THE ASSESSEE IN GROUNDS 1 TO 8 OF THE GROUNDS OF APPEAL BEFORE THE TRIBUNAL WHICH RELATES TO DETERMINATION OF ARMS LENGTH PRICE IN RESPECT OF INTERNATIONAL TRANSACTIONS PERTAINING TO RENDERING SOFTWARE DEVELOPMENT SERVICES, INFORMATION TECHNOLOGY ENABLED SERVICES AND MARKETING SUPPORT SERVICES U/S.92 OF THE ACT, HAVE BEEN SETTLED UNDER THE ADVANCED PRICING ARRANGEMENT (APA) BETWEEN THE IT(TP)A NO.2619/BANG/2019 PAGE 2 OF 2 ASSESSEE AND THE DEPARTMENT. THE AFORESAID APA WOULD ALSO COVER ASSESSMENT YEAR 2015-16 AND THE DISPUTE WOULD BE SETTLED AS PER THE TERMS OF THE APA. THE ASSESSEE, ACCORDINGLY, PRAYED FOR WITHDRAWAL OF GROUND NOS.2 TO 8. THE PRAYER OF THE ASSESSEE IS ACCEPTED AND GROUND NOS.2 TO 8 ARE DISMISSED AS WITHDRAWN. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN GROUND NO.9, THE ASSESSEE HAS SOUGHT PRAYER TO GRANT CREDIT FOR ADVANCE TAX PAID OF RS.7.25 CRORES, CLAIMED IN THE INCOME TAX RETURNS, WHICH WAS NOT ALLOWED BY THE AO. LEARNED COUNSEL FOR THE ASSESSEE MADE A PRAYER THAT THE ISSUE BE REMANDED TO THE AO TO EXAMINE THE CLAIM OF THE ASSESSEE AND IF FOUND CORRECT, ALLOW NECESSARY CREDIT. THE PRAYER MADE BY THE LEARNED COUNSEL FOR THE ASSESSEE IS ACCEPTED AND THE AO IS DIRECTED TO EXAMINE THE CORRECTNESS OF THE CLAIM MADE BY THE ASSESSEE AND IF FOUND CORRECT, TO ALLOW APPROPRIATE CREDIT IN ACCORDANCE WITH LAW. GROUND NO.9 IS ACCORDINGLY TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 16 TH DAY OF DECEMBER, 2020. SD/- SD/- BANGALORE. DATED: 16.12.2020. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE. ( CHANDRA POOJARI ) ( N. V. VASUDEVAN ) ACCOUNTANT MEMBER VICE PRESIDENT