DCIT, Bangalore V. M/s NetScout Systems Software India Pvt. Ltd., Bangalore

ITA 56/BANG/2015

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1139 (ITAT-BANGALORE)
• Duration Of Justice: 4 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-09-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 19-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T (TP) A NO. 56/ BANG/201 5 ASSESSMENT YEAR : 20 10 - 11 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 5 (1) (2), BANGALORE. VS. M/S. NETSCOUT SYSTEMS SOFTWARE INDIA PVT. LTD. (FORMERLY NETWORK GENERAL SOFTWARE INDIA PVT. LTD.), EMBASSY ICON, GROUND FLOOR, NO. 3, INFANTRY ROAD, BANGALORE 560 001. PAN: AAICS0944E APPELLANT RESPONDENT ASSESSEE BY : SHRI CHAVALI NARAYAN, CA REVENUE BY : SHRI SHAHNAWAZ - UL - RAHMAN, JCIT (DR) DATE OF HEARING : 0 4 .0 9 .2019 DATE OF PRONOUNCEMENT : 13 .0 9 .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 ORDER OF LD. CIT(A)-IV, BANGALORE DATED 14.11.2014 FOR ASSESSMENT YEAR 2010-11. 2. VARIOUS GROUNDS ARE RAISED BY THE REVENUE BUT IT WAS POINTED OUT BY THE BENCH IN THE BEGINNING THAT THE TAX EFFECT IN THE PRESENT CASE IS BELOW RS. 50 LAKHS AND THEREFORE, AS PER RECENT INSTRUCTIONS OF CBDT, THIS APPEAL OF REVENUE IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT. THE BENCH POINTED OUT THAT AS PER PARA 3A OF FORM NO. 36 FILED BY THE REVENUE, THE INCOME REPORTED BY THE ASSESSEE IN THE RETURN OF INCOME IS RS. 2,96,48,541/- AND AS PER PARA 3B OF FORM NO. 36, THE ASSESSED INCOME IS RS. 4,05,56,082/- AND HENCE, THE TOTAL ADDITION MADE BY THE AO IS OF RS. 1.09 CRORES. THE BENCH POINTED OUT THAT EVEN IF THE ENTIRE ADDITION IS DELETED BY LD. CIT(A) AND THE REVENUE IS IN APPEAL AGAINST ENTIRE SUCH DELETION, THEN ALSO THE RESULTANT TAX EFFECT OF THE APPEAL OF IT(TP)A NO. 56/BANG/2015 PAGE 2 OF 2 THE REVENUE WILL BE LESS THAN RS. 50 LAKHS AND THEREFORE, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. IN REPLY, THE LD. DR OF REVENUE HAD NOTHING TO SAY AND ACCORDINGLY, WE DISMISS THE APPEAL OF THE REVENUE BECAUSE OF LOW TAX EFFECT. 3. 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/- (PAVAN KUMAR GADALE) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 13 TH SEPTEMBER, 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.