The Deputy Commissioner Of Income Tax, Circle-3(1)(1), Bangalore V. Iron Mountain Services Private Limited, Bangalore

MA 111/BANG/2023

AI Insights

The case involves M/s. Iron Mountain Services Pvt. Ltd., which sought a rectification of the Tribunal's earlier decision regarding the exclusion of certain companies from a list of comparables used for transfer pricing purposes. The Tribunal had previously excluded CES Ltd. but failed to address the exclusion of SPI Technologies India Pvt. Ltd. The Departmental Representative (D.R.) conceded that the issue was overlooked and should be adjudicated. The Tribunal then remitted the matter back to the AO/TPO to examine the financial disclosures of SPI Technologies India Pvt. Ltd. to determine the correctness of the reported related party transactions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129968 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-06-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-06-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 02-03-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANKA GANESH K.
• Section: 13

Judgement Text

MP No.111/Bang/2023 M/s. Iron Mountain Services Pvt. Ltd., Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER MP No.111/Bang/2023 IT(TP)A No.307/Bang/2022 Assessment Year: 2017-18 DCIT Circle 3(1)(1) Bangalore Vs. M/s. Iron Mountain Services Pvt. Ltd. Level 10, Citrine Building Bagmane World Technology Centre-4, Outer Ring Road Mahadevpura Bangalore 560 048 PAN No.AAHCM2578F APPELLANT RESPONDENT Appellant by : Shri Sanka Ganesh K., D.R. Respondent by : N O N E Date of Hearing : 16.06.2023 Date of Pronouncement : 16.06.2023 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: By this MA, the assessee seeks rectification order of the Tribunal in ITA No.307/Bang/2022 dated 20.9.2022, wherein the assessee sought exclusion of SPI Technologies India Ltd. and also CES Limited. The Tribunal adjudicated in para 5 of the order for exclusion of CES Ltd. only but not adjudicated the exclusion of SPI Technologies India Ltd. Hence, the ld. A.R. submitted that this issue may be adjudicated. 2. None appeared for the assessee. We proceed to decide the appeal after hearing the ld. D.R. MP No.111/Bang/2023 M/s. Iron Mountain Services Pvt. Ltd., Bangalore ` Page 2 of 3 2. The ld. D.R. fairly conceded that this issue may be adjudicated as the Tribunal failed to adjudicate it in its order cited (supra). 3. We have heard the rival submissions and perused the materials available on record. The Tribunal in para 12 of its order recorded as follows: “12. Learned Counsel for the assessee submitted that two other companies out of the 13 companies chosen as a comparable company by the TPO viz., CES Ltd., and SPI Technologies India Private Limited should be excluded on the basis that these two companies are not functionally comparable.” 3.1 However, the Tribunal failed to adjudicate the issue relating to exclusion of SPI Technologies India Pvt. Ltd. in its order. Hence, we proceed to adjudicate this issue as follows. 3.2 According to the submissions filed before us, the related party revenue disclosed under the company SPI Technologies Inc. under the first set of the reporting for FY 2016-17 is INR 17,35,00,960. However, the revenue reported for the same company in the second set of the RPT schedule is INR 20,31,81,482. It is not clear from the financial statements as to whether both the amounts are to be considered in determining the total related party transaction or whether the transaction amounts have been wrongly disclosed. 3.3 In our opinion, this is required to be examined at the end of AO/TPO. Hence, this issue is remitted to the file of AO/TPO for fresh consideration. MP No.111/Bang/2023 M/s. Iron Mountain Services Pvt. Ltd., Bangalore ` Page 3 of 3 4. In the result, the MA filed by the revenue is allowed. Order pronounced in the open court on 16 th June, 2023 Sd/- (Beena Pillai) Judicial Member Sd/- (Chandra Poojari) Accountant Member Bangalore, Dated 16 th June, 2023. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(Judicial) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.