Appeal details
Counselvise Citation
[2022] 104 COUNSELVISE.COM (IT) 4658 (ITAT-BANGALORE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 month(s) 29 day(s)
Appellant
Respondent
Appeal Type
Miscellaneous Application
Pronouncement Date
24-04-2022
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Assessment Year
2012-2013
Appeal Filed On
26-12-2021
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER M.P. No. 156/Bang/2021 (in IT(TP)A No. 189/Bang/2017) Assessment Year : 2012-13 M/s. Quest Global Engineering Services Pvt. Ltd., (Quality Engineering and Software Technologies Pvt. Ltd., merged with Quest Global Engineering Services Pvt. Ltd., and now known as latter), PRIMROSE-7B, 2 nd Floor, Embassy Tech Village, Sarjapura – Marathahalli Ring Road, Devarabeesanahalli, Varthur Hobli, Bangalore – 560 095. PAN: AAACQ0369B Vs. The Assistant Commissioner of Income Tax, Circle – 5 (1)(1), Bangalore. APPELLANT RESPONDENT Assessee by : Shri K.R. Vasudevan, Advocate Revenue by : Shri Priyadarshi Mishra, Addl. CIT (DR) Date of Hearing : 25-02-2022 Date of Pronouncement : 25-04-2022 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present miscellaneous petition filed by assessee seeking certain factual rectification in Tribunal order dated 24.06.2021 passed by this Tribunal. The Ld.AR submitted that assessee had not Page 2 of 3 M.P. No. 156/Bang/2021 (in IT(TP)A No. 189/Bang/2017) considered healthcare segment under Acropetal Technologies considered by the DRP is acceptable. This aspect has been wrongly observed by this Tribunal. The Ld.AR placed reliance on the chart based on which this observation has been recorded by Tribunal in para 42 of the impugned Tribunal order. 2. He placed reliance on the decision of Coordinate Bench of this Tribunal in case of LG Soft India Pvt. Ltd vs. DCIT (supra) in IT(TP)A No.52 & 97/Bang/2016 for the same assessment year A.Y 2011-12, by order dated 05/08/2020 excluded Acropetal Technologies Ltd., “11. As far as Acropetal Technologies Ltd. is concerned, vide para 8 of the order of Tribunal in Electronics for Imaging (I) Pvt. Ltd. (supra), exclusion of Acropetal was upheld on the ground that this company was into development of computer products. The Tribunal also held that L&T Infotech Ltd. had RPT at 18.66% and since the RPT was beyond the threshold limit of 15%, this company was directed to be excluded from the list of comparable companies. The Tribunal further excluded Tata Elxsi Ltd. from the list of comparables on the ground that this company was engaged in diversified activities and was not a pure SWD services provider such as the assessee. In para 9 of the aforesaid order, the Tribunal held e-Infochips Ltd., was earning revenue both from the software services and software products and though the break-up of revenue from the two segments were available, but the break-up of Operating Cost and Net Operating revenue and segmental details were not available. 3. We have perused the submissions vis-a-vis the chart and written submissions filed by assessee at the time of hearing. From the chart, though assessee sought for exclusion of Acropetal Technologies Ltd., however, it was mentioned that the margins needs to be corrected which caused confusion at the time of expressing the view in respect of Acropetal Technologies Ltd. We note that there are plethora of decisions wherein Acropetal Technologies Ltd. has been excluded as it is involved in product development as noted in LG Soft India Pvt. Ltd vs. Page 3 of 3 M.P. No. 156/Bang/2021 (in IT(TP)A No. 189/Bang/2017) DCIT (supra). Respectfully following the view, we direct the Ld.AO/TPO to exclude this comparable from the final list. Accordingly, the miscellaneous petition filed by assessee stands allowed. Order pronounced in the open court on 25 th April, 2022. Sd/- Sd/- (CHANDRA POOJARI) (BEENA PILLAI) Accountant Member Judicial Member Bangalore, Dated, the 25 th April, 2022. /MS / Copy to: 1. Appellant 4. CIT(A) 2. Respondent 5. DR, ITAT, Bangalore 3. CIT 6. Guard file By order Assistant Registrar, ITAT, Bangalore
