M/s. BORQS Software Solutions Private Limited, Bangalore V. The Assistant Commissioner of Income Tax, Circle-1(1)(2), Bangalore

MA 37/BANG/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3469 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 25 day(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: misc
• Appeal Filed On: 26-04-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL

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.37/Bang/2022 (in IT(TP)A No.310/Bang/2021 Assessment Year : 2016-17 M/s BORQS Software Solutions Pvt. Ltd., No.3, Prestige Alkareem, Ground Floor, Edward Road, Bengaluru-560 052. PAN : AADCB 8697 G Vs. The Asst. Commissioner of Income Tax, Circle -1(1)(2), BMTC Building, 80 Feet Road, 6 th Block, Near KHB Games Village, Koramangala, Bengaluru-560095. APPELLANT RESPONDENT Appellant by:Shri. Tata Krishna, Advocate Respondent by :Smt.Priyadarshini Baseganni, Addl.CIT 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. It has been stated in the application that ground No.8.10 raised by the Assessee projecting its grievance in the action of the revenue authorities in not treating foreign exchange fluctuation as part of operating profit of the Assessee, remain to be adjudicated. On perusal of the records, we find the contention to be true. In the note filed at the time of hearing, the arguments on ground No.8.10 has not been mentioned. Nevertheless, we find that the TPO himself in paragraph 4.3.1 of his order accepted that foreign exchange MP No.37/Bang/2022 Page 2 of 2 gain has to be treated as part of operating profit for the comparable companies but omitted to apply the same principle when determining the operating profit of the Assessee. Hence, we are of the view that there is a mistake apparent in the order of the tribunal. The same is rectified by adding the following sentence in paragraph 28 of the order of the Tribunal dated 25.10.2021, viz., “The TPO shall also consider the foreign exchange fluctuation gain as part of the operating profit of the Assessee.” 3. In the result, the application is allowed. 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/* Copy to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore.