M/s. Aithent Technologies Private Ltd., New Delhi V. ITO, New Delhi

ITA 4536/DEL/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7055 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I1
• Next Hearing Date: 19-09-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 31-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing; International transaction

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : I-1 : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.4536/DEL/2013 ASSESSMENT YEAR : 2009-10 AITHENT TECHNOLOGIES PVT. LTD., A-16/9, VASANT VIHAR, NEW DELHI. PAN: AAACS2319H VS. DCIT, CIRCLE-1(3), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI AKHILESH GUPTA, ADVOCATE DEPARTMENT BY : SHRI NEERAJ KUMAR, SR. DR DATE OF HEARING : 19.09.2016 DATE OF PRONOUNCEMENT : 21.09.2016 ORDER PER R.S. SYAL, AM: THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM TH E ORDER PASSED BY THE CIT(A) ON 31.05.2013 IN RELATION TO THE ASSE SSMENT YEAR 2009-10. ITA NO.4536/DEL/2013 2 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. THIS APPEAL BY THE ASSESSEE WA S ARGUED ALONG WITH THE APPEAL FOR THE ASSESSMENT YEAR 2008-09 FOR WHIC H A SEPARATE DETAILED ORDER HAS BEEN PASSED. BOTH THE SIDES ARE IN AGREEM ENT THAT THE FACTS AND CIRCUMSTANCES OF THIS APPEAL ARE, MUTATIS MUTANDIS , SIMILAR TO THOSE FOR THE ASSESSMENT YEAR 2008-09. IN FACT, NO SEPARATE ARGUMENTS WERE MADE BY THE EITHER SIDE FOR THIS APPEAL EXCEPT FOR ADOPTING THEIR RESPECTIVE ARGUMENTS MADE FOR THE A.Y. 2008-09. FOL LOWING THE VIEW TAKEN IN OUR ORDER FOR THE AY 2008-09, WE HOLD AS U NDER FOR THE INSTANT YEAR THAT : - (I) NO SEPARATE ADDITION ON ACCOUNT OF TRANSFER PRI CING ADJUSTMENT FOR THE TRANSACTIONS BETWEEN INDIAN HEAD OFFICE AND BRANCH OFFICE IN CANADA SHOULD BE MADE BECAUSE OF THE AGGREGATION OF THE FINANCIAL RESULTS OF BRANCH OFFI CE, CANADA WITH THE INDIAN HEAD OFFICE; (II) NO CAPACITY UTILIZATION ADJUSTMENT AS CLAIMED, CAN BE ALLOWED; AND ITA NO.4536/DEL/2013 3 (III) THE ARMS LENGTH PRICE OF THE INTERNATIONAL T RANSACTION OF PROVIDING SOFTWARE DEVELOPMENT SERVICES BY THE ASSE SSEE TO ITS ASSOCIATED ENTERPRISE, AITHENT INC., US, SHOULD BE RE- DETERMINED BY APPLYING THE FILTERS IN THE MANNER AS DISCUSSED IN OUR ORDER FOR THE AY 2008-09. 3. THE IMPUGNED ORDER IS SET ASIDE AND THE AO/TPO I S DIRECTED TO DETERMINE THE ALP OF THE INTERNATIONAL TRANSACTIONS AFRESH IN THE LIGHT OF OUR ABOVE DISCUSSION. 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 21.09.201 6. SD/- SD/- [KULDIP SINGH] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 21 ST SEPTEMBER, 2016. DK ITA NO.4536/DEL/2013 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.