M/s. Swiss Re Global Business Solutions India Pvt Ltd , Bangalore V. Deputy Commissioner of Income TAx Circle-6(1)(2), Bangalore

MA 161/BANG/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6851 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-07-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 28-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Keywords: Transfer pricing; International transaction

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER [MP NO.161/BANG/2018 (IN IT (TP) A NO. 2028 /BANG/201 7 )] ASSESSMENT YEAR : 20 13 - 14 M/S. SWISS RE GLOBAL BUSINESS SOLUTIONS INDIA PVT. LTD., [FORMERLY KNOWN AS SWISS RE SHARED SERVICES (INDIA) PVT. LTD., VASWANI CENTROPOLIS, 2 ND TO 6 TH FLOOR, LANFORD TOWN, BENGALURU 560 027. PAN : AA ECS 8786 L VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -6(1)(2), BENGALURU. APPELLANT RESPONDENT ASSESSEE BY : SHRI. NAGESHWAR RAO , ADVOCATE REVENUE BY : DR. P. V. PRADEEP KUMAR , ADDL. CIT DATE OF HEARING : 2 7 . 07 .201 8 DATE OF PRONOUNCEMENT : 27 . 0 7 .201 8 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS MISCELLANEOUS APPLICATION IS PREFERRED BY THE ASSESSEE UNDER SECTION 254 OF THE INCOME-TAX ACT (HEREINAFTER CALLED AS ACT) AGAINST THE ORDER OF THE TRIBUNAL DATED 28.02.2018 IN IT(TP)A NO.2028/BANG/2017 WITH THE SUBMISSION THAT THE TRIBUNAL HAS RESTORED THE MATTER TO THE TPO/AO TO RE-EXAMINE THE COMPARABLES TAKEN BY THE ASSESSEE IN TP STUDY AND COMPARABLES ORIGINALLY SELECTED BY THE TPO WHILE DETERMINING THE ALP AND WHATEVER FILTER THE TPO WANTS TO APPLY, IT SHOULD BE APPLIED TO ALL COMPARABLES UNIFORMLY WHILE DETERMINING THE MP NO.161/BANG/2018 (IN IT(TP)A NO. 2028/BANG/2017) PAGE 2 OF 3 ALP OF THE INTERNATIONAL TRANSACTIONS, WHEREAS THE ASSESSEE HAS RESTRICTED HIS ARGUMENTS ONLY WITH REGARD TO THE APPLICABILITY OF FILTERS OF ITES INCOME LESS THAN 75% OF TOTAL OPERATING INCOME CONSISTENTLY AND UNIFORMLY FOR ALL COMPARABLE COMPANIES BY RESTORING THE MATTER TO THE TPO/AO TO RE-EXAMINE THE COMPARABLES. BY APPLYING ALL NECESSARY FILTERS, THE TRIBUNAL HAS GIVEN A FRESH OPPORTUNITY TO THE AO/TPO TO REDETERMINE THE ALP BY APPLYING NEW MORE FILTERS. THEREFORE, THE DIRECTION OF THE TRIBUNAL SHOULD BE RESTRICTED TO THE FILTER OF ITES INCOME LESS THAN 75% OF TOTAL OPERATING INCOME. 2. THE LEARNED DR ON THE OTHER HAND HAS CONTENDED THAT WHILE GIVING DIRECTION TO THE AO/TPO TO APPLY THE FILTERS UNIFORMLY, THE TRIBUNAL HAS TAKEN INTO ACCOUNT ALL RELEVANT ASPECTS AND ARGUMENTS RAISED BY THE PARTIES. DURING THE COURSE OF HEARING, BOTH THE PARTIES HAVE AGREED THAT WHATEVER FILTERS ARE TO BE APPLIED, IT SHOULD BE APPLIED UNIFORMLY TO ALL COMPARABLES. WHILE TAKING COGNIZANCE OF ALL THESE FACTS, THE TRIBUNAL HAS ISSUED THE DIRECTIONS. THEREFORE, THERE IS NO ERROR APPARENT IN THE ORDER OF THE TRIBUNAL. 3. HAVING CAREFULLY EXAMINED THE MISCELLANEOUS APPLICATION VIS--VIS THE ORDER OF THE TRIBUNAL, WE FIND THAT TRIBUNAL HAS GIVEN DIRECTION TO THE AO/TPO TO RE-EXAMINE THE COMPARABLES TAKEN BY THE ASSESSEE IN TP STUDY AND THE COMPARABLES SELECTED BY THE TPO BY APPLYING THE FILTERS UNIFORMLY TO ALL COMPARABLES FOR DETERMINING THE ALP OF THE INTERNATIONAL TRANSACTIONS. WHEREAS, THE ASSESSEE WANTED TO RESTRICT THESE DIRECTIONS UPTO 1 FILTER I.E., ITES INCOME LESS THAN 75% OF TOTAL OPERATING INCOME. WHILE ADJUDICATING THE ISSUE, THE TRIBUNAL HAS TAKEN ALL NECESSARY ASPECTS AND ARGUMENTS ADVANCED DURING THE COURSE OF HEARING. SINCE THE TRIBUNAL HAS DIRECTED THE AO/TPO TO APPLY THE FILTERS UNIFORMLY TO ALL COMPARABLES, WE FIND NO ERROR APPARENT IN THE ORDER OF THE MP NO.161/BANG/2018 (IN IT(TP)A NO. 2028/BANG/2017) PAGE 3 OF 3 TRIBUNAL. ACCORDINGLY, THE MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE STANDS DISMISSED. 4. IN THE RESULT, MISCELLANEOUS APPLICATION OF THE ASSESSEE STANDS DISMISSED`. PRONOUNCED IN THE OPEN COURT ON 27 TH JULY, 2018. SD/- SD/- BANGALORE. DATED: 27 TH JULY, 2018. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. DR 4 . CIT 5 . GUARD FILE BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE. (INTURI RAMA RAO) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER