ITO, Bangalore V. M/s Informatica Business Solutions Pvt. Ltd., Bangalore

ITA 457/BANG/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0380 (ITAT-BANGALORE)
• Duration Of Justice: 5 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-05-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 21-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P K PRASAD; UMASHANKAR
• Keywords: Transfer pricing

Judgement Text

ITA.457/BANG/2011 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'B', BANGALORE BEFORE SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI. VIJAYPAL RAO, JUDICIAL MEMBER I.T(TP).A NO.457/BANG/2011 (ASSESSMENT YEAR : 2005-06) INCOME TAX OFFICER (INTERNATIONAL TAXATION), WARD 11(2), BENGALURU .. APPELLANT V. M/S. INFORMATICA BUSINESS SOLUTIONS P. LTD, NO.66/1, BAGMANE TECH PARK, C. V. RAMAN NAGAR, BANGALORE 560 093 .. RESPONDENT PAN : AABCI0762M ASSESSEE BY : SHRI. P. K. PRASAD & SHRI. UMASHANKAR , CA REVENUE BY : SHRI. S. NAMIRAJAN, JCIT HEARD ON : 16.05.2016 PRONOUNCED ON : .05.2016 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : REVENUE IN THIS APPEAL HAS ALTOGETHER TAKEN 15 GRO UNDS OF WHICH GROUNDS 1, 14 AND 15 ARE GENERAL NEEDING NO SPECIFI C ADJUDICATION. GROUNDS 4 TO 13 ARE ON TRANSFER PRICING ISSUES AND GROUND 3 IS ON EXCLUSION OF TELECOMMUNICATION EXPENSES FROM BOTH EXPORT AS W ELL AS TOTAL TURNOVER ITA.457/BANG/2011 PAGE - 2 FOR WORKING OUT THE DEDUCTION U/S.10A OF THE INCOME -TAX ACT, 1961 (THER ACT IN SHORT). 02. WHEN THE CASE CAME UP FOR HEARING, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT TRANSFER PRICING ADJUSTMENTS DONE FO R THE IMPUGNED ASSESSMENT YEAR WERE SUBJECT MATTER OF A MUTUAL AGR EEMENT PROCEDURE (MRP), AS PER ARTICLE 27 OF INDIAN USA DOUBLE TAXAT ION AGREEMENT. A COPY OF ORDER NO.F/980/5/2012-FTD-1, DT.04.12.2015, OF FOREIGN TAX & TAX RESEARCH DIVISION WAS PLACED ON RECORD. ON THE OTHER ISSUE VIZ., DEDUCTION U/S.10A, LD. AR SUBMITTED THAT LD. CIT (A )S ORDER WAS IN LINE WITH THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH CO URT IN THE CASE OF CIT V. TATA ELXSI LTD (349 ITR 98). LD. DR FAIRLY AGRE ED, BUT STATED THAT JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT HAS B EEN APPEALED AGAINST BEFORE THE HONBLE APEX COURT. 03. WE HAVE HEARD THE CONTENTIONS AND PERUSED THE M ATERIAL ON RECORD. IN SO FAR AS TP ISSUES ARE CONCERNED, ADJUSTMENTS M ADE UNDER TP WAS SUBJECT MATTER OF MAP WHICH HAS BEEN RESOLVED THROU GH FT & TRD ORDER NO. F/980/5/2012-FTD-1, DT.04.12.2015. HENCE THR G ROUNDS RELATING TO TP DO NOT SURVIVE ANYMORE. AS FOR THE ISSUE RELATING TO COMPUTATION OF DEDUCTION U/S.10A OF THE ACT, DECISION GIVEN BY THE CIT (A) WAS IN LINE ITA.457/BANG/2011 PAGE - 3 WITH THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH CO URT IN THE CASE OF TATA ELXSI LTD (SUPRA). THEIR LORDSHIP HAD HELD THAT IT EMS WHICH WERE EXCLUDED FROM EXPORT TURNOVER HAD TO BE EXCLUDED FROM TOTAL TURNOVER ALSO FOR COMPUTING THE DEDUCTION U/S.10A OF THE ACT. 04. IN THE RESULT, APPEAL OF THE REVENUE STANDS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON ___ DAY OF MA Y, 2016. (VIJAYPAL RAO) (ABRAH AM P GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER MCN COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR