Deputy Commissioner of Income Tax, Circle-2(1)(1), Bengaluru V. M/s. Century Link Technologies India Pvt. Ltd, Bangalore

MA 3/BANG/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6742 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-06-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 04-01-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PADAMCHAND KHINCHA
• Assessee Lawyers: DR SATYA SAI RATH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, B ENGALURU BEFORE S HRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER MISC.PETN. NO. 3 /BANG/201 8 ( IN I T (TP) A NO. 292 / BANG/2 0 1 3 ) (ASSESSMENT YEAR: 20 08 - 09 ) DEPUTY COMMISSIONER OF INCOME - TAX, CIRCLE 2(1)(1), BENGALURU. VS. PETITIONER M/S.CENTURY LINK TECHNOLOGIES PVT. LTD. (FORMERLY KNOWN AS QWEST TELECOM SOFTWARE SERVICE PVT.LTD. BLOCK B, I & II FLOOR, B WING, SURVEY NO.15/3 & 16, KADUBEESANAHALLI, VARTH UR HOBLI, BENGALURU - 560103. RESPONDENT PETITI O NER BY : SHRI PADAM CHAND KHINCHA, C A. RESPONDENT BY : DR. SATYA SAI RATH, ADDL.CIT(DR) ADDL.CIT. DATE OF HEARING : 01 /0 6 /2018 DATE OF PRONOUNCEMENT : 08 / 0 6 /201 8 O R D E R PER I NTURI RAMA RAO, A M : THIS MISCELLANEOUS PETITION (MP) IS FILED BY THE REVENUE SEEKING MODIFICATION OF THE ORDER PASSED BY THIS TRIBUNAL IN IT (TP) A NO .292/BANG/2018 ON THE GROUND THAT THE TRIBUNAL HAD FAILED TO RETURN A FINDING ON GROUNDS OF APPEAL NO.3 AND 4. THE GROU NDS NO.3 AND 4 READ AS UNDER: 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) ERRED IN HOLDING THAT THE SIZE AND TURNOVER OF THE COMPANY ARE DECIDING FACTORS FOR TREATING A COMPANY AS A COMPARABLE, AND ACCORDINGLY ERRED IN EXCLU DING M/S.FLEXTRONICS LTD., M/S.IGATE GLOBAL SOLUTIONS LTD., M/S. INFOSYS TECHNOLOGIES LTD., M/S.MINDTREE LTD., M/S PERSISTENT SYSTEMS LTD., M/S. SASKEN COMMUNICATIONS TECHNOLOGIES LTD., M/S. TATA ELXSI LTD., AND M/S WIPRO LTD., AS COMPARABLES. MP NO . 3 /BAN G/201 8 PAGE 2 OF 2 4. ON TH E FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) HAS ERRED IN REJECTING THE DIMINISHING REVENUE FILTER USED BY THE TPO TO EXCLUDE COMPANIES THAT DO NOT REFLECT THE NORMAL INDUSTRY TREND. 2. WE HEARD RIVAL SUBMISSIONS AND PERUSED MATERIA L ON RECORD. ON PERUSAL OF THE IMPUGNED ORDER, IT IS CLEAR THAT THE TRIBUNAL HAD FAILED TO RETURN A FINDING ON THE GROUNDS NO.3 & 4 FILED BY THE REVENUE. ACCORDINGLY, WE RECALL THE TRIBUNAL ORDER FOR THE LIMITED PURPOSE OF RETURNING A FINDING ON GROUNDS NO.3 AND 4. 3. IN THE RESULT, MP IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JUNE , 2018 SD/ - SD/ - (SUNIL KUMAR YADAV) (INTURI RAMA RAO) J UDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 08 / 06 /201 8 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE