TRIMBLE SOLUTIONS CORPORATION, MUMBAI V. DCIT (INTERNATIONAL TAXATION)-4(1)(2), MUMBAI

MA 158/MUM/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5701 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2016-2017
• Appeal Filed On: 19-07-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 13

Judgement Text

MA NO.158 /MUM/ 2021 ASSESSMENT Y EAR: 2016 - 17 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI I BENCH, MUMBAI [CORAM : PRAMOD KUMAR (VICE PRESIDENT) A ND SAKTIJIT DEY (JUDICIAL MEMBER) ] MA NO. 158/MUM/2021 (ARISING OUT ITA NO. 5340/MUM/2019) ASSESSMENT Y EAR: 2016 - 17 TRIMBLE SOLUTIONS CORPORATION .APP LICANT C/O. SRBC & ASSOCIATES LLP 14 TH FLOOR, THE RUBY, 29, SENAPATI BAPAT MARG, DADAR (W), MUMBAI - 400 028 [ PAN: AADCT 2639 Q ] VS D EPUTY C OMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) - 4(1)(2) , MUMBAI ..........RESPONDENT APPEARANCES BY DIVESH CHAWLA FOR T HE AP P LICANT VIJAYKUMAR G. S UBRAMANYAM FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : SEPTEMBER 17 , 2021 DATE OF PRONOUNC EMENT : SEPTEMBER 17 , 2021 ORAL ORDER (DICTATED IN THE OPEN COURT) PER PRAMOD KUMAR, VP : 1. BY WAY OF THIS MISCELLANEOUS APPLICATION, THE ASSESSEE APPLICANT POINTS OUT THAT THERE IS A TYPOGRAPHICAL ERROR, INASMUCH AS THE GROUNDS OF APPEAL REPRODUCED IN PARAGRAPH 2 OF THE ORDER DATED 18.01.2021 HAVE BEEN WRONGLY SET OUT. 2. WHEN THIS APPLICATION CAME UP FOR HEARING, SHRI DIVESH CHAWLA, L EARNED C OUNSEL FOR THE ASSESSEE SUBMITTED THAT THERE IS A N APPARENT TYPOGRAPHICAL ERROR , INASMUCH AS THE REPRODUCTION OF THE GROUND IN PARAGRAPH 2 IS INCORRECT, BUT THEN H E HASTEN TO ADD THAT EXCEPT FOR THIS ERROR IN REPRODUCTION OF THE GROUND, THE SUBMISSION S AND DISCUSSIONS AND REFERENCE TO THE ORDERS BY WHICH THE GROUNDS OF THE ASSESSEE AR E COVERED , ARE IN ORDER. THE L EARNED C OUNSEL OF THE ASSESSEE FURTHER POINTS OUT THAT IN THE SAID ORDER, AN EARLIER ORDER IN ASSESSEES OWN CASE MA NO.158 /MUM/ 2021 ASSESSMENT Y EAR: 2016 - 17 PAGE 2 OF 3 FOR THE A.Y. 2012 - 13 DATED 07.10.2020 WAS FOLLOWED AND THERE IS NO DISPUTE WITH RESPECT TO THE SAME. WE ARE, THUS, URGED TO CORRECT THE REPRODUCTION IN PARAGRAPH 2 OF THE ORDER DATED 18.01.2021. THE L EARNED C OUNSEL OF THE ASSESSEE FURTHER POINTS OUT AN INADVERTENT TYPOGRAPHICAL ERROR IN THE HEADER OF THE ORDER AS A.Y. 2011 - 12 INSTEAD OF A.Y. 2016 - 17. 3. THE L EA RNED DEPARTMENTAL REPRESENTATIVE WITH HIS UNUSUAL FAIRNESS SUBMITS THAT THE POINT BEING MADE BY THE LD. COUNSEL OF THE ASSESSEE , IS INDEED CORRECT. 4. WE HAVE PERUSED THE MATERIAL ON RECORD AND WE FIND THAT THERE IS INDEED AN INADVERTENT , THOUGH , SER I OUS TYPOGRAPHICAL ERROR IN REPRODUCTION OF THE GROUNDS OF THE APPEAL OF THE ASSESSEE. WE, THEREFORE, DEEM IT FIT AND PROPER TO RECTIFY THE SAME BY INSERT ING CORRECT PARAGRAPH 2 IN THE PLACE OF PARAGRAPH 2 OF PAG E 1 AND 2 OF THE ORDER DATED 18.01.2021 , AS F OLLOWS: 2. GRIEVANCES RAISED BY THE APPELLANT ARE AS FOLLOWS: GROUND NUMBER 1 ERRED IN DETERMINING THE TOTAL TAXABLE INCOME OF THE APPELLANT FOR THE SUBJECT AY AT RS.31,45,35,765 AS AGAINST NIL INCOME REPORTED IN THE RETURN OF INCOME FILED BY THE APPELLANT FOR THE SUBJECT AY; GROUND NUMBER 2 ERRED IN HOLDING THAT PAYMENTS OF RS.30,72,48,171 RECEIVED BY THE APPELLANT TOWARDS SALE OF OFF - THE SHELF SOFTWARE PRODUCTS AND MAINTENANCE AND SUPPORT SERVICES ARE IN THE NATURE OF ROYALTY UNDER THE INDIA - FINLAND TAX TREATY; GROUND NUMBER 3 ERRED IN HOLDING THE REIMBURSEMENT OF EXPENSES INCURRED BY THE APPELLANT FOR PERFORMING SUPPORT FUNCTIONS AT A GROUP LEVEL AS BEING IN THE NATURE OF MANAGEMENT FEES. GROUND NUMBER 4 ERRED IN HOLDING THAT THE REIMBURSEMENT OF RS.72 , 87,624 RECEIVED BY THE APPELLANT IS TAXABLE AS FEES FOR TECHNICAL SERVICES UNDER THE PROVISI ONS OF SECTION 9(1)(VII) OF THE ACT; GROUND NUMBER 5 ERRED IN HOLDING THAT THE REIMBURSEMENT OF RS.72,87,624 RECEIVED BY THE APPELLANT IS TAXABLE AS FEES FOR TECHNICAL SERVICES UNDER THE INDIA - FINLAND TAX TREATY; MA NO.158 /MUM/ 2021 ASSESSMENT Y EAR: 2016 - 17 PAGE 3 OF 3 GROUND NUMBER 6 ERRED IN INITIATING P ENALTY PROCEEDINGS UNDER SECTION 271(1)(C) AND SECTION 271F OF THE ACT. 5. FURTHER, THE ASSESSMENT YEAR IN THE HEADER OF THE APPEAL ORDER SHOULD BE READ AS A.Y. 2016 - 17 IN PLACE OF A.Y. 2011 - 12. THE SAME STANDS RECTIFIED AS SUCH. 6. WE MAKE IT CLEAR THAT THE ABOVE RECTIFICATION WILL NOT HAVE ANY IMPACT ON THE CONCLUSIONS OR ANY OTHER DISCUSSIONS IN THE SUBJECT ORDER. TO THIS EXTENT, THE ORDER DATED 18.01.2021 STANDS MODIFIED. 7 . IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE IS ALLOWED IN TERMS INDICATED ABOVE. DICTATED AND PRONOUNCED IN THE OPEN COURT ON 17 TH DAY OF SEPTEMBER, 2021. SD/ - SD/ - SAKTIJIT DEY PRAMOD KUMAR (JUDICIAL MEMBER) (VICE PRESIDENT) MUMBAI , D ATED THE 17 TH D AY OF SEPTEMBER , 202 1 ROSHANI, SR. PS COPIES TO : (1) THE APPLICANT (2) THE RESPONDEN T (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR /SR. PS INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, MUMBAI