Barracuda Networks India Private Limited, Bangalore V. Deputy Commissioner Of Income Tax, Circle-1(1)(1), Bangalore

MA 33/BANG/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3470 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 21-07-2022
• Assessment Year: 2016-2017
• Appeal Filed On: 20-04-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PADAMCHAND KHINCHA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER MP No.33/Bang/2022 (in IT(TP)A No.229/Bang/2021) Assessment Year : 2016-17 M/s. Barracuda Networks India Private Limited, 9 Hosur Road, Prestige Blue Chip Software Park, Block 2, Level 3, 2 nd Floor, Opp. Christ University, Hosur Main Road, Bengaluru – 560 029. PAN : AABCN 1157 H Vs. The Deputy Commissioner of Income Tax, Circle -1(1)(1), Bengaluru. APPELLANT/PETITIONERRESPONDENT/RESPONDENT Appellant by:Shri. Padam Chand Khincha, CA Respondent by :Smt.Priyadarshini Baseganni, Addl.CIT(DR)(ITAT), Bengaluru Date of hearing:22.07.2022 Date of Pronouncement:22.07.2022 O R D E R Per N. V. Vasudevan, Vice President: This is a Miscellaneous Application filed by the Assessee u/s.254(2) of the Income Tax Act, 1961 (Act), praying for rectifying alleged errors in the order passed by this Tribunal dated 25.10.2021 in the aforesaid appeal. 2. The allegation in the application is that the Tribunal omitted to consider and decide ground No.11(e) raised by the Assessee in which the Assessee has contended that no separate adjustment for interest on delayed receivables is required when working capital adjustment is given or where the margins of international transaction is held to be at Arm’s length price. In Ground No.10 & 11 of the concise grounds of appeal the Assessee raised issue with regard to determination of ALP by construing the delayed realization M.P.No.33/Bang/2022 Page 2 of 3 of receivable by the Assessee from its AE as a separate international transaction and determining ALP of such delayed receivables. The tribunal decided the issue vide paragraph 38 to 44 of its order. The contention of the Assessee on ground No.11(e) has been specifically dealt with by the Tribunal in paragraph 41 of its order wherein the Tribunal followed the decision of ITAT Delhi Bench rendered in the case of Bechtel India Pvt. Ltd., ITA No.6530/Del/2016 dated 16.5.2017 and held that the argument that interest gets subsumed in the working capital adjustment cannot be accepted. The margins in the international transaction have not been held to be at Arm’s length and hence the second part of ground no.11(e) is also without any substance. Therefore, there is no mistake much less a mistake apparent on the face of the record, which warrants interference u/s.254(2) of the Act. The application is accordingly dismissed. 3. In the result, the application is dismissed. Pronounced in the open court on the date mentioned on the caption page. Sd/- Sd/- (CHANDRA POOJARI) (N. V. VASUDEVAN) ACCOUNTANT MEMBER VICE PRESIDENT Bangalore, Dated : 22.07.2022. /NS/* M.P.No.33/Bang/2022 Page 3 of 3 Copy to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore.