MORGAN STANLEY SOLUTIONS INDIA P.LTD, MUMBAI V. DCIT CIR 9(2), MUMBAI

ITA 7608/MUM/2014

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9011 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 9 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2010-2011
• Appeal Filed On: 22-12-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAYANT KUMAR
• Assessee Lawyers: TUSHAR HATHIRAMANI
• Keywords: Transfer pricing
• Section: 143(3); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH K, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA NO. 7608/MUM/2014 (ASSESSMENT YEAR 2010-11) MORGAN STANLEY SOLUTIONS INDIA PRIVATE LIMITED,(FORMERLY KNOWN AS MSIM GLOBAL SUPPORT AND TECHNOLOGY SERVICES PRIVATE LIMITED) 4 TH FLOOR, BUILDING NO.B-2, NIRLON KNOWLEDGE PARK, PAHADVI VILLAGE, OFF WESTERN EXPRESS HIGHWAY, GOREGAON EAST, MUMBAI 400 063 PAN:AADCM7403M ...... APPELLANT VS. THE DCIT, CIRCLE 9(2) ROOM NO.261, 2 ND FLOOR AAYKAR BHAVAN,M.K.ROAD, MUMBAI 400 020 .... RESPONDENT APPELLANT BY : SHRI TUSHAR HATHIRAMANI RESPONDENT BY : SHRI JAYANT KUMAR DATE OF HEARING : 05/10/2017 DATE OF PRONOUNCEMENT : 11/10/2017 ORDER PER G.S.PANNU,A.M: THE CAPTIONED APPEAL FILED BY THE ASSESSEE PERT AINING TO ASSESSMENT YEAR 2009-10 IS DIRECTED AGAINST AN ORDE R PASSED BY DCIT, CIR.9(2), (IN SHORT THE ASSESSING OFFICER ) PASSED UNDER SECTION 143(3) R.W.S. 144C(13) OF THE INCOME TAX ACT, 1961 ( IN SH ORT THE ACT) DATED 2 ITA NO. 7608/MUM/2014 (ASSESSMENT YEAR 2010-11) 30/10/2014, WHICH IS IN CONFORMITY WITH THE DIRECTI ON OF THE DISPUTE RESOLUTION PANNEL-1, MUMBAI ( IN SHORT THE DRP) DATED 29/09/2014. 2. VIDE LETTER DATED 4 TH OCTOBER, 2017, ASSESSEE HAS REQUESTED FOR GRANT OF PERMISSION TO WITHDRAW ITS APPEAL. THE CONTENTS OF THE ASSESSEES LETTER READ AS UNDER:- WE REFER TO THE CAPTIONED APPEAL SCHEDULED FOR HEA RING BEFORE THE HON'BLE 'K BENCH ON 5 OCTOBER 2017. IN RESPECT OF THE SAME, WE WISH TO SUBMIT AS UNDER: FOR THE YEAR UNDER CONSIDERATION, THE HON'BLE DISPU TE RESOLUTION PANEL (DRP) HAD GRANTED RELIEF ON CERTAIN GROUNDS FOLLOWING WHI CH THE TRANSFER PRICING ADJUSTMENT PROPOSED BY THE TRANSFER PRICING OFFICER WOULD STAND DELETED. HOWEVER, WHILE ISSUING THE FINAL ASSESSMENT ORDER, THE ASSESSING OFFICER (AO) DID NOT CONSIDER THE DIRECTIONS OF THE HON'BLE DRP FOR COMPUTING THE ARM'S LENGTH PRICE. THEREFORE, THE ASSESSEE FILED AN APPEAL BEFORE THE HON'BLE ITAT TO CHALLENGE THE ASSESSMENT ORDER PASSED BY THE LEARNED AO FOR, INTER ALIA, FAILING TO INCORPORATE THE DIRECTIONS ISSUED BY THE HON'BLE DR P. SIMULTANEOUSLY, THE ASSESSEE HAD ALSO FILED A RECTIFICATION LETTER DATE D 27 NOVEMBER 2014, IN ORDER TO RECTIFY THESE MISTAKES WHICH ARE APPARENT FROM RECORD. SUBSEQUENT TO THE RECTIFICATION APPLICATION FILED B Y THE ASSESSEE, THE AO RECTIFIED THE MISTAKES APPARENT FROM RECORD BY ISSU ING AN ORDER DATED 30 APRIL 2015, UNDER SECTION 154 OF THE INCOME-TAX ACT ,1961, GIVING APPROPRIATE EFFECT TO THE DRP DIRECTIONS. GIVEN THE ABOVE, WE WOULD LIKE TO WITHDRAW THIS APP EAL WITH THE PERMISSION OF YOUR HONOUR. SEPARATELY, THE ASSESSEE, IN ITS GROUNDS OF APPEAL BEFORE THE HON'BLE ITAT, STATED THAT THE LEARNED AO HAS ALSO ERRED IN CONSID ERING THE ACTIVITIES UNDERTAKEN BY THE ASSESSEE AS KNOWLEDGE PROCESS OUT SOURCING (KPO), WITHOUT CONSIDERING THAT, IN PRIOR YEARS THE SAME W AS HELD TO BE AS INFORMATION TECHNOLOGY ENABLED SUPPORT SERVICES (IT ES) AND NOT KPO SERVICES. THE WITHDRAWAL OF THE CAPTIONED APPEAL BY THE ASSES SEE IS SOLELY FOR THE PURPOSE OF BUYING PEACE OF MIND AND COMPANY IS OF T HE VIEW THAT THE FUNCTIONS PERFORMED ARE IN THE NATURE OF ITES AND N OT IN THE NATURE OF KPO. 3 ITA NO. 7608/MUM/2014 (ASSESSMENT YEAR 2010-11) ACCORDINGLY, MSSI WISHES TO SUBMIT THAT WITHDRAWAL OF THE CAPTIONED APPEAL SHOULD NOT, IN ANY MANNER; AFFECT MSSI'S RIGHT, FOR THE PURPOSES OF ONGOING/ PAST/ FUTURE LITIGATION, TO AGITATE SIMILAR GROUNDS IN OTHER YEARS OR TO CONTEND THAT THE FUNCTIONS PERFORMED BY MSSI ARE IN THE NAT URE OF ITES AND NOT IN THE NATURE OF KPO. WE PRAY TO YOUR HONOUR TO KINDLY ACCEPT OUR REQUEST OF WITHDRAWAL OF APPEAL AND OBLIGE. 3. LD. DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE HAS NO OBJECTION TO THE AFORESAID REQUEST OF THE ASSESSEE. 4. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS DISMI SSED AS WITHDRAWN ORDER PRONOUNCED IN THE OPEN COURT ON 11/10/2017. SD/- SD/- (RAVISH SOOD) (G.S. PANNU) JUDICIAL MEMBER ACCOCUNTANT MEMBER MUMBAI, DATED 11/10/2017 VM , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI