Dy.C.I.T., Bangalore V. M/s Cisco Systems Services B.V. Indian Branch, Bangalore

ITA 359/BANG/2015

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4361 (ITAT-BANGALORE)
• Duration Of Justice: 4 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 18-03-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 12-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 144C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER IT (IT) A NO. 359 / BANG/201 5 ASSESSMENT YEAR : 2 0 10 - 1 1 THE DEPUTY COMMISSIONER OF INCOME-TAX (INTERNATIONAL TAXATION), CIRCLE 1 (1), BANGALORE. VS. M/S. CISCO SYSTEMS SERVICES B V INDIA BRANCH, DIVYASHREE CHAMBERS, B WING, NO. 11, O SHAUGNESSY ROAD, OFF LANGFORD ROAD, BANGALORE 560 025. PAN: AACCC4836D APPELLANT RESPONDENT APPELLANT BY : MS. NEERA MALHOTRA, CIT (DR) RESPONDENT BY : SHRI CHAVALI NARAYAN, CA DATE OF HEARING : 1 8 .0 3 .2019 DATE OF PRONOUNCEMENT : 22. 0 3 .2019 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE AND THE SAME IS DIRECTED AGAINST THE ASSESSMENT ORDER PASSED BY THE AO ON 30.01.2015 U/S. 143(3) R.W.S. 144C OF IT ACT, 1961 FOR ASSESSMENT YEAR 2010-11 AS PER THE DIRECTIONS OF DRP. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1. THE ORDER OF THE LEARNED DRP IS OPPOSED TO LAW AND FACTS OF THE CASE. 2. THE LEARNED DRP WAS NOT JUSTIFIED IN DIRECTING THE A.O. TO FOLLOW THE DECISION OF THE HONBLE HIGH COURT IN THE CASE OF CIT VS TATA ELXSI AND OTHERS IN THE CONSOLIDATED ORDER DATED 30.08.2011 IN ITA NO. 70/2009 & OTHERS (2012) 247 CTR 334 WHILE COMPUTING THE DEDUCTION U/S 10A. 3. THE LEARNED DRP ERRED IN ALLOWING THE RELIEF, RELYING ON THE DECISION OF THE HONBLE HIGH COURT IN THE CASE OF CIT VS TATA ELXSI AND OTHERS IN THE CONSOLIDATED ORDER DATED 30.08.2011 IN ITA NO. 70/2009 & OTHERS (2012) 247 CTR 334, WHILE THE SAME HAS NOT BEEN ACCEPTED BY THE DEPARTMENT AND A SLP HAS BEEN FILED BEFORE THE HONBLE SUPREME COURT AGAINST SUCH ORDER IS PENDING. IT (IT) A NO.359/BANG/2015 PAGE 2 OF 2 4. THE LD. DRP IS ERRED IN EXCLUDING THE COMPARABLE WHILE THE COMPARABLE IS QUALIFYING ALL THE QUALITATIVE AND QUANTITATIVE FILTERS APPLIED BY THE TPO. 5. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS HUMBLY PRAYED THAT THE ORDER OF THE LEARNED DRP BE ANNULLED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 6. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL. 3. AT THE VERY OUTSET, IT WAS SUBMITTED BY LD. DR OF REVENUE THAT IN THIS APPEAL OF REVENUE, THE TAX EFFECT IS BELOW RS. 20 LAKHS AND BECAUSE OF THAT, THIS APPEAL IS BEING WITHDRAWN. SHE SUBMITTED A LETTER F.NO. DCIT/INTL.TAXN. /2015-16 DATED 17.02.2016 WRITTEN BY THE AO I.E. DCIT, CIRCLE 1 (1), INTERNATIONAL TAXATION, BANGALORE IN THIS REGARD. THE LD. DR OF REVENUE SUPPORTED THE DIRECTION OF DRP IN THIS REGARD. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE PERMIT THE REVENUE TO WITHDRAW ITS APPEAL. ACCORDINGLY THE APPEAL OF THE REVENUE IS DISMISSED AS WITHDRAWN. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 22 ND MARCH, 2019. /MS/ COPY TO: 1. APPELLANT 4. CIT (A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.