DCIT, New Delhi V. M/s. Vertex Customer Management India Ltd., Gurgaon

ITA 6692/DEL/2015

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 5922 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2011-2012
• Appeal Filed On: 18-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANCHAL KHANDELWAL
• Assessee Lawyers: RAJINDER HANDA
• Keywords: Transfer pricing; International transaction
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: I-2 NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBE R & SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 6692/DEL/2015 ( ASSESSMENT YEAR: 2011-12) DCIT, CIRCLE-26(1), C.R. BUILDING, NEW DELHI. VS VERTEX CUSTOMER MANAGEMENT INDIA LTD. 1 ST FLOOR, TOWER A, FIRST INDIA PALACE, MEHRAULI ROAD, SUSHANT LOK, PHASE-1, GURGAON. AADCU7256M APPELLANT RESPONDENT REVENUE BY MS. ANCHAL KHANDELWAL, SR. DR ASSESSEE BY SH. RAJINDER HANDA, CA ORDER PER SHRI BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST T HE ASSESSMENT ORDER DATED 23.10.2015 PASSED U/S 143(3) /144C OF THE I.T. ACT BY DCIT, CIRCLE 26(1), NEW DELHI, PASS ED IN PURSUANCE TO THE DIRECTIONS OF DRP-2, NEW DELHI DATED 21.09.2 015 ON THE FOLLOWING GROUNDS: DATE OF HEARING 01.10.2018 DATE OF PRONOUNCEMENT 03.10.2018 2 ITA NO. 6692/DEL/2015 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE DRP-2 ERRED IN DIRECTING AO TO COMPLETE THE ASSESSM ENTS AS PER OBSERVATION MADE BY DRP IN THE ORDER WHICH RESULTING IN REDUCTION OF THE ADDITION TO RS. 16,88 ,88,296/- FOR THE INTERNATIONAL TRANSACTIONS UNDERTAKEN THE A SSESSEE COMPANY WITH ITS ASSOCIATES/PARENT ENTERPRISES. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE DRP HAS ERRED IN DIRECTING THE AO/TPO TO EXCLUDE BELOW MENTIONED COMPARABLE FROM THE FINAL LIST OF COMPARA BLES AS: I. ACCENTIA TECHNOLOGIES LTD. II. ECLERX SERVICES LTD. III. INFOSYS BPO LTD. IV. TCS E-SERVE LTD. 3. THE APPELLANT CRAVES, LEAVE OR RESERVING THE RIGHT TO AMEND MODIFY, ALTER, ADD OR FOREGO ANY GROUNDS OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 2. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET, SUBM ITTED THAT THE TRIBUNAL WHILE DECIDING THE APPEAL OF THE ASSES SEE FOR SAME AY 2011-12 IN ITA NO. 966/2016, VIDE ORDER DATED 06.07 .2018 HAS QUASHED THE IMPUGNED ASSESSMENT ORDER DATED 23.10.2 015. COPY OF THE ORDER OF THE TRIBUNAL IS PLACED ON RECORD, I N WHICH THE TRIBUNAL OBSERVED THAT SINCE IN THIS CASE ASSESSMEN T HAS BEEN FRAMED ON A NON-EXISTENT COMPANY, THEREFORE, IT WAS HELD THAT 3 ITA NO. 6692/DEL/2015 SUCH ASSESSMENT IS A NULLITY IN THE EYES OF LAW, TH EREFORE, THE SAME WAS QUASHED. COPY OF THE ORDER IS PROVIDED TO THE LD. DR, WHO DID NOT DISPUTE THE SAME. 3. CONSIDERING THE ABOVE FACTS, IN THE LIGHT OF THE ORDER OF THE TRIBUNAL DATED 06.07.2018 IN THE CASE OF THE ASSESS EE QUASHING THE IMPUGNED ASSESSMENT ORDER BEING NULLITY, THE DE PARTMENTAL APPEAL STANDS INFRUCTUOUS AND IS ACCORDINGLY DISMIS SED. 4. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 03.10.2018 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 6692/DEL/2015 DATE OF DICTATION 01.10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 03.10.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 03.10.18 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 03.10.18 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 03.1 0.18 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER