Appeal details
Counselvise Citation
[2018] 126 COUNSELVISE.COM (IT) 3221 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 year(s) 2 month(s) 2 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
01-03-2018
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
I
Assessment Year
2008-2009
Appeal Filed On
29-12-2014
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES I-2 : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA.NO.7043/DEL./2014 ASSESSMENT YEAR 2008-2009 DCIT, CIRCLE-3(1)(2) ROOM NO.418, 4 TH FLOOR, E-2 BLOCK, DR. S.P. MUKHERJEE CIVIC CENTRE, NEW DELHI 11002. VS M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, A-75, SECTOR-57, NOIDA, U.P. PAN AABCV8275E (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI SANJAY KUMAR YADAV, D.R. FOR ASSESSEE : SHRI ANUBHAV RASTOGI, ADVOCATE DATE OF HEARING : 22.02.2018 DATE OF PRONOUNCEMENT : 03.2018 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-XXIX, NEW DELHI, DATED 21 ST OCTOBER, 2014, FOR THE A.Y. 2008-2009. 2. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BO TH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. 2 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . 3. ON GROUND NO.1, THE REVENUE CHALLENGED THE ORDE R OF LD. CIT(A) IN HOLDING THAT ASSESSEE IS ENTITLED TO DEDUCTION UNDER SECTION 10A OF THE I.T. ACT IN RESPECT OF EXP ORT OF SOFTWARE. 3.1. BRIEF FACTS ON THE ISSUE ARE THAT THE ASSESSE E IS A COMPANY INCORPORATED IN USA AND IS A 100% SUBSIDIAR Y OF VIRAGE LOGIC CORPORATION. IT IS A MARKET LEADER IN PROVIDING ADVANCED EMBEDDED MEMORY INTELLECTUAL PROPERTY (IP) FOR THE DESIGN OF COMPLEX INTEGRATED CIRCUITS. THE ASSESSEE HAD A BRANCH OFFICE IN INDIA, ENGAGED IN THE BUSINESS OF DEVELOPMENT OF COMPUTER SOFTWARE. AS PER JUDGMENT OF HONBLE KA RNATAKA HIGH COURT IN THE CASE OF INDIAN BRANCH OF VIRAGE L OGIC CORPORATION GOT MERGED WITH SYNOPSYS (INDIA) PRIVAT E LIMITED. THE BRANCH OFFICE WAS SET-UP IN INDIA AFTER OBTAINI NG NECESSARY APPROVAL FROM THE RESERVE BANK OF INDIA (RBI) WITH THE SOLE OBJECT OF DEVELOPMENT AND EXPORT OF SOFTWARE. THE B RANCH OFFICE SET-UP A SOFTWARE TECHNOLOGY PARK UNIT UNDER THE SO FTWARE TECHNOLOGY PARKS SCHEME OF GOVERNMENT OF INDIA FOR ESTABLISHING THE UNIT THEREIN PER APPROVAL DATED 23 RD 3 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . SEPTEMBER, 1999. SINCE THE DATE THE BRANCH WAS ESTA BLISHED AND ALSO DURING THE INSTANT YEAR, THE BUSINESS OF T HE BRANCH OFFICE WAS TO DEVELOP AND EXPORT OF COMPUTER SOFTWA RE TO ITS HEAD OFFICE IN USA. PRODUCTS DELIVERED BY VIRAGE GROUP C ONSIST OF VARIOUS SOFTWARE TOOLS ALONG WITH SUPPORTING FILES THAT CONTAIN DESIGN DATA FOR CREATING THE REQUISITE SILICON IP. SINCE INCEPTION OF INDIAN BRANCH OFFICE IN MAY, 1999, ENGINEERING S ITE AT INDIA HAS BEEN WORKING ON VARIOUS ACTIVITIES RELATED TO I P PRODUCTS AND PLATFORMS OFFERED AS MENTIONED IN THE IMPUGNED ORDER. ALL THE FILES ARE DEVELOPED ON UNIX OPERATING SYSTEMS O N SUN PLATFORMS OR IN THE WINDOWS NT ENVIRONMENT. THE CRE ATED FILES ARE SHIPPED OVERSEAS ELECTRONICALLY VIA INTERNET. T HE BRANCH OFFICE FILED ITS RETURN OF INCOME DECLARING INCOME OF RS.47,11,359/- AND CLAIMED REFUND OF RS.6,29,460/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND THE A .O. DENIED DEDUCTION UNDER SECTION 10A OF THE I.T. ACT. IT WAS SUBMITTED THAT THE ISSUE OF DEDUCTION UNDER SECTION 10A IS SQ UARELY COVERED BY THE DECISION OF THE ITAT IN ASSESSEES O WN CASE FOR A.YS. 2001-2002 TO 2007-2008. THE ORDER OF THE TRIB UNAL IS 4 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . REPRODUCED IN THE APPELLATE ORDER AND THE LD. CIT(A ) FOLLOWING THE ORDER OF THE TRIBUNAL, ALLOWED THE CLAIM OF ASS ESSEE FOR DEDUCTION UNDER SECTION 10A OF THE I.T. ACT. 2.2. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET SUBMITTED THAT THE DEPARTMENTAL APPEAL HAVE BEEN DI SMISSED BY THE HONBLE JURISDICTIONAL DELHI HIGH COURT IN T HE CASE OF DY. DIRECTOR OF INCOME TAX VS. VIRAGE LOGIC INTERNATION AL REPORTED IN (2016) 389 ITR 142 (DEL.) CONFIRMING THE ORDER O F THE TRIBUNAL IN ALLOWING DEDUCTION UNDER SECTION 10A OF THE I.T. ACT. 3. THE LD. D.R. DID NOT DISPUTE THIS PROPOSITION. 4. IN VIEW OF THE ABOVE, IT IS CLEAR THE TRIBUNAL HAS ALREADY DECIDED THE ISSUE OF DEDUCTION UNDER SECTIO N 10A OF THE I.T. ACT IN FAVOUR OF THE ASSESSEE IN PRECEDING ASS ESSMENT YEARS. THE APPEAL OF THE DEPARTMENT HAVE BEEN DISMISSED BY THE HONBLE JURISDICTIONAL DELHI HIGH COURT. THE ISSUE IS, THEREFORE, COVERED IN FAVOUR OF THE ASSESSEE BY ORDER OF THE T RIBUNAL AS WELL AS HONBLE JURISDICTIONAL DELHI HIGH COURT. GROUND NO.1 OF APPEAL OF REVENUE IS DISMISSED. 5 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . 5. ON GROUND NO.2, REVENUE CHALLENGED THE ORDER OF THE LD. CIT(A) IN DIRECTING THE A.O./TPO TO EXCLUDE M/S . INFOSYS TECHNOLOGIES LTD., FROM THE LIST OF COMPARABLES FOR THE PURPOSE OF BENCHMARKING THE INTERNATIONAL TRANSACTION AND C OMPUTING THE ALP IN RELATION TO SOFTWARE DEVELOPMENT SERVICE S. THE TPO/A.O. HAVE CONSIDERED THE ISSUE OF ALP UNDER SEC TION 92CA(3) OF THE I.T. ACT AND MADE ADJUSTMENT AMOUNTI NG TO RS.2,07,75,061/-. THE ASSESSEE CHALLENGED THE ORDER S OF THE AUTHORITIES BELOW BEFORE LD. CIT(A). THE ASSESSEE S UBMITTED BEFORE LD. CIT(A) THAT IN ITS T.P. STUDY IT HAS USE D TNMM METHOD AS THE MOST APPROPRIATE METHOD AND OPERATING PROFIT /TOTAL COST (OP/TC') AS THE PROFIT LEVEL INDICATOR (PLI). THE BENCHMARKING ANALYSIS CONDUCTED BY THE ASSESSEE IN ITS T.P. DOCUMENTATION USING MULTIPLE YEAR DATA SHOWS ASSESS EES OP/TC AT 6.95% BUT AVERAGE COMPARABLES OP/TC IS 4.0 7%. THE ASSESSEE PRODUCED COMPLETE DATA BEFORE TPO. THE TPO ASKED ASSESSEE TO FILE FRESH SEARCH FOR IDENTIFY COMPARAB LE AND ASSESSEE FILED, OUT OF WHICH, TPO ACCEPTED 05 OUT O F 07 COMPARABLES FROM THE FRESH SEARCH ANALYSIS SUBMITTE D BY 6 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . ASSESSEE. THE TPO DENIED THE WORKING CAPITAL ADJUST MENT TO THE MARGIN OF THE COMPARABLES ON THE GROUND THAT ASSESS EE DID NOT DEMONSTRATE THAT THE WORKING CAPITAL DEPLOYED AFFEC TED THE MARGIN EARNED BY THE ASSESSEE AND THE COMPARABLES. THE TPO, THEREFORE, PASSED ORDER UNDER SECTION 92CA(3) OF TH E ACT, COMPUTED AN ADDITION OF RS.2,07,75,061/- TO THE TAX ABLE INCOME OF THE ASSESSEE. 5.1. THE ASSESSEE SUBMITTED BEFORE LD. CIT(A) THAT ASSESSEE IS ENTITLED FOR TAX HOLIDAY UNDER SECTION 10A OF THE I.T. ACT ON ITS PROFIT. THEREFORE, THERE WOULD NOT HAVE ANY UNTOWARD MOTIVE OF DERIVING A TAX ADVANTAGE BY MANIPULATING TRANSFER PRICES OF ITS INTERNATIONAL TRANSACTION. IT WAS, TH EREFORE, SUBMITTED THAT SINCE THE ASSESSEE ENJOYED TAX HOLID AY UNDER SECTION 10A OF THE I.T. ACT, HENCE, DOES NOT HAVE A NY MOTIVE TO SHIFT PROFIT OUT OF INDIA TO MANIPULATE TRANSFER PR ICE. THE ASSESSEE SUBMITTED THAT COMPARABLES SEARCH PROCESS UNDERTAKEN BY THE ASSESSEE IN ITS T.P. STUDY WAS AN EXTREMELY COMPREHENSIVE AND DETAILED EXERCISE AND INVOLVED AP PLICATION 7 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . OF VARIOUS QUANTITATIVE FILTERS, FOLLOWED BY A DETA ILED QUALITATIVE ANALYSIS INVOLVING SELECTING/REJECTING COMPANIES ON THE BASIS OF THEIR BUSINESS DESCRIPTIONS/ACTIVITIES AND ALSO EXI STENCE OF CONTROLLED/RELATED PARTY TRANSACTIONS, WHICH MAY SI GNIFICANTLY AFFECT THEIR PROFITABILITY. THE ACTION OF THE TPO I N REJECTING COMPARABLES IN ITS T.P DOCUMENTATION IS COMPLETELY ERRONEOUS. THE DETAILED SUBMISSIONS OF THE ASSESSEE IS REPRODU CED IN THE APPELLATE ORDER. THE FAR ANALYSIS OF EACH OF THE CO MPARABLES SELECTED BY TPO HAVE BEEN DISCUSSED IN THE APPELLAT E ORDER AND AS REGARDS THE SOLE ISSUE RELATING TO M/S. INFOSYS TECHNOLOGY LTD., THE ANALYSIS OF THE ASSESSEE THAT IT IS IN NO WAY COMPARABLE WITH ASSESSEES FUNCTIONS OF I.T. SERVICES, IS REPR ODUCED IN THE IMPUGNED ORDER WHICH READS AS UNDER : 6. INFOSYS TECHNOLOGIES LIMITED (INFOSYS) HIGH TURNOVER : COMPANY HAS A TURNOVER OF RS.15,648 CRORES WHICH IS 866 TIMES THAT OF APPELLANTS TURNO VER OF 18.06 CRORES. INTANGIBLES : THE COMPANY HAS SUBSTANTIAL INTANGIBL E ASSETS VALUED AT INR 130,684 CRORES COMPRISING BRAN D 8 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . VALUE ITSELF AT INR 31,863 CRORES (AS ON MARCH 31, 2008) AS PROVIDED IN THE ANNUAL REPORT FOR FY 2008. ON THE OTHER HAND, THE APPELLANT BEING A CAPTIVE SERVICE PROVIDER, RENDERING SERVICES TO ITS OVERSEA S AFFILIATE WITHIN A RISK INSULATED SCENARIO IS NOT R EQUIRED TO CREATE BRAND AWARENESS AND THEREBY HAVE PREMIUM PRICING FURTHER THE APPELLANT WOULD LIKE TO HIGHLIGHT THE FOLLOWING DIFFERENCES BETWEEN INFOSYS AND THE APPELLANT : - INFOSYS IS A GIANT IN THE SOFTWARE DEVELOPMENT SPACE, WHILE APPELLANT IS A CAPTIVE UNIT OF ITS PARENT. - INFOSYS ASSUMES ALL RISK WHILE APPELLANT ASSUMES LIMITED RISKS. - ALSO INFOSYS DEVELOPS/OWNS PROPRIETARY PRODUCTS, AND HAS SIGNIFICANT INTANGIBLES ASSETS. - ALMOST HALF OF THE SOFTWARE DEVELOPMENT SERVICES RENDERED BY INFOSYS ARE ONSITE (TYPICALLY, ONSITE SERVICES COMMAND HIGHER BILLABLE RATES), WHEREAS TAXPAYER PROVIDES ONLY OFFSHORE SERVICES. INFOSYS HAS BEEN REJECTED IN THE RECENT RULINGS IN CASE OF : 9 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . DELHI HIGH COURT IN THE RULING OF AGNITY INDIA TECHNOLOGIES PVT. LTD., ITA.NO.1204/2011 TOLUNA INDIA PRIVATE LIMITED AGNITY INDIA TECHNOLOGIES PVT. LTD., (ITA.NO.3856(DEL./2010), ITAT, DELHI. TELCORDIA TECHNOLOGIES INDIA P. LTD., SONATA SOFTWARE LTD., ITA.NO.3514/MUM/2010, ITAT, MUMBAI. MERITOR LVS INDIA (P) LTD., ITA.NO.405 & 523/B/11, (TS-681-ITAT-2012(BANG)-TP), ITAT, BANGALORE. BEARING POINT BUSINESS CONSULTING PRIVATE LTD., TRILOGY E-BUSINESS SOFTWARE INDIA PVT. LIMITED ADOPTEC INDIA PRIVATE LIMITED. 5.2. THE LD. CIT(A) IN HIS FINDINGS RECORDED M/S. INFOSYS TECHNOLOGY LTD., AFTER EXAMINING THE DETAILS ON REC ORD FOUND THAT THE MAIN ARGUMENT OF THE ASSESSEE IS THAT THIS COMPANY BEING A GIANT INDUSTRY CANNOT BE COMPARED WITH THE ASSESSEE. THE LD. CIT(A) FOLLOWED THE DECISION OF HONBLE JUR ISDICTIONAL DELHI HIGH COURT IN THE CASE OF CIT VS. AGNITY INDI A TECHNOLOGIES PVT. LTD., 262 CTR 391 AND DIRECTED THE A.O. TO DRO P THIS COMPANY AS COMPARABLE. 10 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . 6. THE REVENUE IS IN APPEAL AGAINST THE DIRECTION OF THE LD. CIT(A) IN DIRECTING TO DROP THIS COMPANY AS COM PARABLE ON GROUND NO.2. 7. THE LD. D.R. RELIED UPON THE ORDER OF THE TPO/A .O. AND SUBMITTED THAT THE LD. CIT(A) HAS ERRED IN EXCL UDING M/S. INFOSYS TECHNOLOGY LTD., FROM THE LIST OF COMPARABL ES SOLELY ON THE BASIS OF HIGH TURNOVER WHICH IS UNSUSTAINABLE I N LAW, CONSIDERING THE SETTLED POSITION TO THE EFFECT THAT HIGH OR LOW TURNOVER BY ITSELF CANNOT BE A GROUND FOR EXCLUDING AN ENTITY AS COMPARABLE. HE HAS SUBMITTED THAT LD. CIT(A) HAS NO T EXAMINED THIS ISSUE IN PROPER PERSPECTIVE AND DECISION OF M/ S. AGINITY INDIA TECHNOLOGIES PVT. LTD., IS DISTINGUISHABLE ON FACTS. 8. ON THE OTHER HAND, LEARNED COUNSEL FOR THE ASSE SSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORIT IES BELOW AND SUBMITTED THAT BOTH THE COMPANIES ARE INDEPENDE NT AND FUNCTIONS ARE NOT COMPARABLE AND AN IDENTICAL ISSUE HAVE BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE HONBLE JU RISDICTIONAL DELHI HIGH COURT IN THE CASE OF CIT VS. AGINITY IND IA 11 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . TECHNOLOGIES PVT. LTD., (SUPRA). HE HAS SUBMITTED T HAT ITAT, DELHI BENCH IN SEVERAL DECISIONS ON THE SAME REASON , DIRECTED TO EXCLUDE M/S. INFOSYS TECHNOLOGY LTD., FROM THE F INAL SET OF COMPARABLES AND FILED COPIES OF THE FOLLOWING ORDER S, IN WHICH M/S. INFOSYS TECHNOLOGY LTD., HAVE BEEN EXCLUDED FR OM THE COMPARABLES. 1. DECISION OF THE ITAT, DELHI BENCH IN THE CASE OF SIMENS PRODUCT LIFECYCLE MANAGEMENT SOFTWARE (INDIA) (P.) LTD., VS. ACIT (2018) 90 TAXMANN.COM 165 (DEL.) (TRIBU.) 2. DECISION OF THE ITAT, DELHI BENCH IN THE CASE OF SUN LIFE INDIA SERVICE CENTRE (P.) LTD., VS. ACIT (2015) 63 TAXMANN.COM 167 (DEL.) (TRIBU.) 3. DECISION OF THE ITAT, DELHI BENCH IN THE CASE OF GLOBAL LOGIC INDIA (P.) LTD., VS. DCIT (2015) 41 ITR (T) 6 22 (DEL.) (TRIBU.) 4. DECISION OF THE ITAT, DELHI BENCH IN THE CASE OF AIRCOM INTERNATIONAL INDIA (P.) LTD., VS. DCIT (2017) 189 TTJ 682 (DEL.) (TRIBU.) 5. DECISION OF THE ITAT, DELHI BENCH IN THE CASE OF CONVERSE NETWORK SYSTEMS INDIA (P.) LTD., VS. ACIT (2017) 54 ITR (T) 158 (DEL.) (TRIBU.) 8. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSES SEE- 12 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . COMPANY HAS FILED ITS SUBMISSIONS AND ITS ANALYSIS WITH REGARD TO M/S. INFOSYS TECHNOLOGY LTD. IT HAS BEEN POINTED -OUT THAT THIS COMPANY HAS HUGE TURNOVER WHICH IS 866 TIMES T O THAT OF THE ASSESSEES TURNOVER. IT WAS ALSO EXPLAINED THAT THIS COMPANY HAS SUBSTANTIAL TANGIBLE ASSETS. ON THE OTHER HAND, ASSESSEE, BEING A CAPTIVE SERVICE PROVIDER, RENDERING SERVICE S TO ITS OVERSEAS AFFILIATE WITHIN A RISK INSULATED SCENARIO IS NOT REQUIRED TO CREATE BRAND AWARENESS AND THEREBY, HAVE PREMIUM PRICING. THE ASSESSEE ALSO EXPLAINED THAT M/S. INFOSYS TECHN OLOGY LTD., IS A GIANT IN SOFTWARE DEVELOPMENT WHILE ASSESSEE I S A CAPTIVE UNIT OF ITS PARENT. M/S. INFOSYS TECHNOLOGY LTD., A SSUMES ALL RISKS WHILE ASSESSEE ASSUMES LIMITED RISK. ALMOST H ALF OF THE SOFTWARE DEVELOPMENT SERVICES RENDERED BY M/S. INFO SYS TECHNOLOGY LTD., ARE ONSITE, WHEREAS, ASSESSEE PROV IDES ONLY OFF- SHORE SERVICES. THE CONTENTION OF ASSESSEE HAS BEEN ACCEPTED BY LD. CIT(A) AFTER EXAMINING THE ISSUE. THE HONBLE J URISDICTIONAL DELHI HIGH COURT IN THE CASE OF AGINITY INDIA TECHN OLOGIES PVT. LTD., (SUPRA), CONSIDERED THE IDENTICAL ISSUE AND A S REGARDS M/S. INFOSYS TECHNOLOGY LTD., HELD IN PARA-6 AS UNDER : 13 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . 6. LEARNED COUNSEL FOR THE REVENUE HAS SUBMITTED T HAT THE TRIBUNAL AFTER RECORDING THE AFORESAID TABLE HA S NOT AFFIRMED OR GIVEN ANY FINDING ON THE DIFFERENCES. T HIS IS PARTLY CORRECT AS THE TRIBUNAL HAS STATED THAT INFO SYS TECHNOLOGIES LTD. SHOULD BE EXCLUDED FROM THE LIST OF COMPARABLES FOR THE REASON LATTER WAS A GIANT COMPA NY IN THE AREA OF DEVELOPMENT OF SOFTWARE AND IT ASSUMED ALL RISKS LEADING TO HIGHER PROFITS, WHEREAS THE RESPON DENT- ASSESSEE WAS A CAPTIVE UNIT OF THE PARENT COMPANY A ND ASSUMED ONLY A LIMITED RISK. IT HAS ALSO STATED THA T INFOSYS TECHNOLOGIES LTD. CANNOT BE COMPARED WITH THE RESPO NDENT- ASSESSEE AS SEEN FROM THE FINANCIAL DATA ETC. TO TH E TWO COMPANIES MENTIONED EARLIER IN THE ORDER I.E. THE C HART. IN THE GROUNDS OF APPEAL THE REVENUE HAS NOT BEEN ABLE TO CONTROVERT OR DENY THE DATA AND DIFFERENCES MENTION ED IN THE TABULATED FORM. THE CHART HAS NOT BEEN CONTROVE RTED. 8.1. THE HONBLE JURISDICTIONAL DELHI HIGH COURT DISMISSED THE APPEAL OF THE REVENUE. LEARNED COUNSE L FOR THE 14 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . ASSESSEE ALSO FILED COPIES OF VARIOUS DECISIONS OF ITAT, DELHI BENCH REFERRED TO ABOVE, IN WHICH, ALSO THE TRIBUNA L HAS EXCLUDED M/S. INFOSYS TECHNOLOGY LTD., FROM COMPARA BLES. CONSIDERING THE ABOVE DISCUSSION IN THE LIGHT OF EX PLANATION AND ANALYSIS PROVIDED BY THE ASSESSEE, WHICH HAVE NOT B EEN CONTROVERTED BY THE REVENUE, WE DO NOT FIND ANY INF IRMITY IN THE ORDER OF THE LD. CIT(A), IN DIRECTING TO EXCLUDE M/ S. INFOSYS TECHNOLOGY LTD., FROM COMPARABLES. THERE IS NO MERI T IN THE DEPARTMENTAL APPEAL ON GROUND NO.2. THE SAME IS ACC ORDINGLY DISMISSED. 9. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 01 ST MARCH, 2018 VBP/- 15 ITA.NO.7043/DEL./2014 M/S. VIRAGE LOGIC INTERNATIONAL INDIA BRANCH OFFICE, NOIDA, U.P . COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT I - 2 BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.
