M/s. MetricStream Infotech (India) Private Limited, Bengaluru V. Assistant Commissioner Of Income Tax, Circle- 4(1)(2), Bangalore

MA 167/BANG/2023

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The case involves MetricStream Infotech (India) Private Limited, which filed a miscellaneous petition against the order of the Income Tax Appellate Tribunal dated 16.06.2023. The original order remanded various issues to different authorities (DRP, AO, TPO) which could lead to conflicting proceedings. The assessee argued that this division was unworkable and cited a precedent (MP No.21/Bang/2016) to support the need for rectification. The Departmental Representative conceded to the rectification. Consequently, the Tribunal modified the remand to ensure all related issues are considered by the DRP, thus streamlining the process.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124605 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 29-06-2023
• Other Referred Cases: ACI Worldwide Solutions P. Ltd.
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PADAMCHAND KHINCHA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER MP No.167/Bang/2023 [in IT(TP)A No.153/Bang/2022] Assessment year : 2017-18 MetricStream Infotech (India) Private Limited, # 23 & 24, AMR Tech Park 4B, Honagasandra Village, Begur Hobli, Bengaluru – 560 068. PAN : AACCM 4991K Vs. The Assistant Commissioner of Income Tax, Circle 4(1)(2), Bangalore. APPLICANT RESPONDENT Appellant by : Shri Padam Chand Khincha, CA Respondent by : Shri Veera Raghavan, Jt.CIT(DR)(ITAT), Bengaluru. Date of hearing : 28.07.2023 Date of Pronouncement : 02.08.2023 O R D E R Per Laxmi Prasad Sahu, Accountant Member This miscellaneous petition is filed by the assessee stating that there is a mistake apparent from the record in the order of the Tribunal dated 16.06.2023 for the assessment year 2017-18 requiring rectification. 2. The ld. AR submitted that the Tribunal in its order dated 16.06.2023 has remanded the issues to the file of DRP/AO/TPO as follows:- MP No.167/Bang/2023 Page 2 of 4 Sl. No. Ground Remanded to Order dated 16.06.2023 Reference 1. No.5(iii) – exclusion of companies on different parameters DRP Para 10.1 2. 5(iv) – Inclusion of companies in the software development segment Sagarsoft India Ltd. AO/TPO Para 11.5 Sasken Communication Technologies Ltd. AO/TPO Para 13.1 Sankhya Infotech Ltd. AO/TPO Para 14 Athena Global Technologies Ltd. AO/TPO Para 15.4 Isummation Technologies P. Ltd. AO/TPO Para 17.3 Nitor Infotech P. Ltd. AO/TPO Para 18.2 3. No.9(iv) - Exclusion of companies in Marketing support service segment DRP Para 20.2 4. No.9(v) – Inclusion of companies in Marketing support service segment DRP Para 21.1 3. Thus the different issues have been remanded to two different authorities through the same order which would lead to unworkable situation in the proceedings before different authorities for the same assessment year and multiplicity of proceedings before different authorities. Therefore, it was submitted that there is a mistake apparent on record and prayed for rectification of the order of the Tribunal. He relied on the order of the Tribunal in MP No.21/Bang/2016 dated 27.05.2016 in the case of ACI Worldwide Solutions P. Ltd. 4. The ld. DR fairly conceded to rectification of the said order. 5. We have heard both the parties and perused the material on record. We note from the chart given above that different issues have been remanded to two different authorities leading to multiplicity of proceedings on the remand issues before different authorities. Hence MP No.167/Bang/2023 Page 3 of 4 there is a mistake apparent on record and therefore to bring parity, the following issues raised in ground No.5(iv) in the said the order of the Tribunal is modified and substituted to remand the issues to the file of ld. DRP for fresh consideration to read as follows:- Ground Order dated 16.6.2023 Reference Remanded to Ground No. 5(iv) – Inclusion of companies in the software development segment Sagarsoft India Ltd. Para 11.5 DRP Sasken Communication Technologies Ltd. Para 13.1 DRP Sankhya Infotech Ltd. Para 14 DRP Athena Global Technologies Ltd. Para 15.4 DRP Isummation Technologies P. Ltd. Para 17.3 DRP Nitor Infotech P. Ltd. Para 18.2 DRP 6. Except for the above modification/substitution of remand of the issues in ground No.5(iv) to the DRP, the rest of the order remains unchanged. 7. In the result, the miscellaneous petition of the assessee is allowed. Pronounced in the open court on this 02 nd day of August, 2023. Sd/- Sd/- ( BEENA PILLAI ) (LAXMI PRASAD SAHU ) JUDICIAL MEMBER ACCOUNTANT MEMBER Bangalore, Dated, the 02 nd August, 2023. /Desai S Murthy / MP No.167/Bang/2023 Page 4 of 4 Copy to: 1. Applicant 2. Respondent 3. CIT 4. DRP 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore.