Assistant Commissioner of Income Tax, Circle-2(1)(2), Bangalore V. M/s Electronic Imaging India Pvt. Ltd., Bangalore

MA 326/BANG/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6739 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-06-2018
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 27-12-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, B ENGALURU BEFORE S HRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER MP NO. 326/BANG/20 17 (IN I T (TP) A NO. 1506 / BANG/2 0 1 5) (ASSESSMENT YEAR: 2011 - 12 ) ASST. COMMISSIONER OF I NCOME - TAX , CIRCLE 2(1)(2), BENGALURU. VS. PETITIONER M/S.ELECTRONICS FOR IMAGING INDIA PVT.LTD. KALYANI PLATINA, 4 TH FLOOR, BLOCK 1, NO.24, EPIP ZONE, PHASE II, WHITEFIELD, BENGALURU - 560066. RESPONDENT PETITIONER BY : SHRI B.R.RAMES H, JCIT(DR) RESPONDENT BY : SHRI PADAMCHAND KHINCHA, CA DATE OF HEARING : 08/06/2018 DATE OF PRONOUNCEMENT : 15 /06/2018 O R D E R PER I NTURI RAMA RAO, AM : THIS MISC. PETITION IS FILED BY THE REVENUE SEEKING MODIFICATION OF THE ORDER PASSED B Y THE TRIBUNAL IN IT (TP) A NO. 1506 /BANG/201 5 DATED 14/07/2017 ON THE GROUND THAT THE TRIBUNAL HAD FAILED TO RETURN FINDING ON THE COMPAR ABILITY OF THE COMPANY M/S. ACROPETAL TECHNOLOGIES LTD., AND THREE COMPARABLES VIZ., PERSISTENT SYSTEMS & SOLUTION LTD., AND PERSISTENT SYSTEMS LTD., AND SASKEN COMMUNICATION TECHNOLOGIES LTD. CAME TO BE EXCLUDED BY THIS TRIBUNAL ALTHOUGH THE ASSESSEE - COMPANY NEVER SOUGHT EXCLUSION OF THESE COMPANIES ; THIS TRIBUNAL HAD WRONGLY MENTIONED THREE COMPANIES NAMELY M/S.AERO AGENC IES LTD., KILLICK AGENCIES AND MARK ET ING LTD., AND PRIYA INTERNATIONAL LTD., IN PARA.11 OF ORDER, I NSTEAD OF AS I AN BUSINESS EXHIBITION AND CONFERENCES LTD., AND ICC INTERNATIONAL AGENCIES LTD., PRIYA INTERNATIONAL LTD. 2. WE HEARD RESPECTIVE PARTIES AND PE RUSED MATERIAL ON RECORD. WE FIND THAT THE ISSUE OF COMPARABILITY WAS DISCUSSED BY THE TRIBUNAL IN MP NO . 326 /BANG/20 17 PAGE 2 OF 3 PARA.16.1 AT PAGE 15 PARA.8. WE FIND THAT THOUGH THE NAME O F THE COMPARABLE ENTITY ACROPETAL TECHNOLOGIES LTD., WAS NOT MENTIONED AT THE TOP OF THE PARA, THIS TRIBUNAL, WHILE PASSING THE IMPUGNED ORDER , HAD REFERRED TO PARA.16.1 OF THE ORDER PASSED BY THIS TRIBUNAL IN THE CASE OF M/S. APPLIED MATERIALS LTD., VS. ACIT IN IT (TP)A NOS.17 & 39/BANG/2016 AT PAGE 15 OF THIS ORDER , WHEREIN THE COMPARABILITY OF THI S ENTITY WAS DISCUSSED AFTER EXTRACTING THE DISCUSSIONS MADE BY THIS TRIBUNAL. THIS TRIBUNAL HAD DIRECTED AO TO EXCLUDE THIS COMPANY FROM THE LIST OF COMPARABLE. THEREFORE, IT WOULD BE SUFFICIENT TO CORRECT THE ORDER BY INSERTING ACROPETAL TECHNOLOGIES L TD., ABOVE PARA.16.1 AT PAGE 15. ACC ORDINGLY THIS INSERTION IS MADE. AFTER INSERTION, PARA.16.1 OF TRIBUNAL ORDER SHALL READ AS UNDER: ACROPETAL TECHNOLOGIES LTD., 16.1 THE DRP REJECTED THIS COMPANY ON THE GROUND OF EMPLOYEE COST FILTER. THE LD.DR H AS SUBMITTED THAT THE TPO HAS APPLIED THE EMPLOYEE COST FILTER AND THIS COMPANY SATISFIES THE SAME. 3. SIMILARLY, IN PARA.11 AT PAGE 22 OF THE TRIBUNAL ORDER , THE FOLLOWING COMPARABLES SHALL BE INSERTED IN PLACE OF AERO AGENCIES LTD., KILLICK AGENCIES & MARKETING LTD. AND PRIYA INTERNATIONAL LTD. THE MODIFIED PARA.11 OF TRIBUNAL ORDER SHALL READ AS UNDER: 11. IN THE SALES & MARKETING SUPPORT SERVICE SEGMENT, THE TPO SELECTED 3 COMPANIES AS UNDER: 1 ASIA BUSINESS EXHIBITION & CONFERENCE LTD., 2 ICC INTERNATIONAL AGENCIES LTD., 3 PRIYA INTERNATIONAL LTD., 4. AS REGARDS OTHER ISSUE RAISED IN THE PRESENT PETITION THAT THE TRIBUNAL HAD WRONGLY EXCLUDED PERSISTE NT SYSTEMS & SOLUTIONS LTD., PERSISTENT SYSTEMS LTD., AND SASKEN TECHNOLOGY LTD., THOU GH NOT ARGUED, WE FIND FROM THE MATERIAL ON RECORD THAT TH ESE COMPARABLE S W EREE MP NO . 326 /BANG/20 17 PAGE 3 OF 3 ARGUED AND ACCORDINGLY, THE TRIBUNAL RENDER ED A FINDING. THEREFORE, WE DO NOT FIND ANY MISTAKE ON THIS ASPECT. 5. IN THE RESULT, THE MP IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JUNE , 2018 S D/ - S D/ - ( SUNIL KUMAR YADAV ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 15 / 0 6 /201 8 SRINIVASULU, SPS COPY TO : 1 PETITIONER 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE