Commvault Systems India Pvt. Ltd., Hyderabad V. DCIT, Circle-1(2), Hyderabad

MA 40/Hyd/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3210 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2012-2013
• Appeal Filed On: 29-09-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing; International transaction
• Section: 254(2)

Judgement Text

MA NO40 OF 2020 COMMVAULT SYSTEMS INDIA P LTD HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER MA NO.40/HYD/2020 (ARISING OUT OF ITA NO.160/HYD/2017) ASSESSMENT YEAR: 2012-13 COMMVAULT SYSTEMS INDIA (P) LTD, HYDERABAD PAN:AACCC3708L VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(2) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI DARPAN KIRPALANI REVENUE BY : SRI SUNIL KUMAR PANDEY, DR DATE OF HEARING: 20/11/2020 DATE OF PRONOUNCEMENT: 20/11/2020 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS MISCELLANEOUS APPLICATION IS FILED BY THE ASSE SSEE U/S 254(2) OF THE I.T. ACT, SUBMITTING THAT IN THE ORDER OF THE TRIBUNAL DATED 4/9/2020 IN ITA NO.160/HYD/2017, THE RE ARE CERTAIN MISTAKES APPARENT FROM RECORD WHICH NEEDS R ECTIFICATION. 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAD RAISED AN ADDITIONAL GROUND OF APP EAL NO.3 IN THE ITA NO.160/HYD/2017 TO THE EFFECT THAT THE TP A DJUSTMENT SHOULD BE RESTRICTED PROPORTIONATELY TO THE VALUE O F INTERNATIONAL TRANSACTIONS UNDERTAKEN WITH ITS ASSOCIATED ENTERPR ISES (AES), BUT THE TRIBUNAL HAD NOT ADJUDICATED THIS GROUND AN D THEREFORE, THERE IS A MISTAKE APPARENT FROM RECORD. IT IS FURT HER POINTED OUT THAT IN PAGE 3 OF THE ORDER, IT IS MENTIONED BY THE TRIBUNAL THAT MA NO40 OF 2020 COMMVAULT SYSTEMS INDIA P LTD HYDERABAD PAGE 2 OF 3 THE VERY SAME ISSUE HAD ARISEN IN THE A.Y 2011-12 W HEREAS THE INITIAL YEAR OF THE ACTIVITY OF DISTRIBUTION OF SOF TWARE WAS THE FINANCIAL YEAR 2010-11. HE, THEREFORE, PRAYED THAT THESE MISTAKES BE RECTIFIED BY THE TRIBUNAL. 3. THE LEARNED DR WAS ALSO HEARD WHO SUBMITTED THAT THERE ARE NO MISTAKES IN THE ORDER OF THE TRIBUNAL WHICH NEEDS RECTIFICATION. 4. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE DEEM IT FIT AND PROPER TO RECTIFY THE FOLLOWING LINES OF PARA 3 ON PAGE 8 OF THE ORDER (I.E. FIRST TWO SENTE NCES) WHICH SHALL BE READ AS UNDER: HE ACCORDINGLY COMPUTED THE ALP AT RS.6,21,26,401/- AND ACCORDINGLY PROPOSED ADJUSTMENT. HE SUBMITTED THAT THE VERY SAME ISSUE HAD ARISEN IN THE FIRST YEAR OF ACTIVITY I.E. IN THE FINANCIAL YEAR 2010-11 AND THE ISSUE HAD COME UP FOR ADJUDICATION BEFORE THE COORDINATE BENCH OF THIS TRIBUNAL AND THE TRIBUNAL HAS HELD THE ACTIVITY TO BE A DISTRIBUTION ACTIVITY AND NOT RENDERING OF SERVICES BY THE ASSESSEE TO ITS AE . 5. AS REGARDS THE ASSESSEES GRIEVANCES THAT THE ADDITIONAL GROUND OF APPEAL NO.3 HAS NOT BEEN ADJUD ICATED, WE FIND THAT THE ISSUE IN THE SAID GROUND IS THAT THE TP ADJUSTMENT SHOULD BE RESTRICTED TO THE VALUE OF THE INTERNATIO NAL TRANSACTIONS UNDERTAKEN WITH AES ONLY, AND THAT IT IS SETTLED LA W THAT THE TP ADJUSTMENT IS TO BE DONE WITH REGARD TO INTERNATION AL TRANSACTIONS UNDERTAKEN BY THE ASSESSEE WITH ITS AES ONLY. SINC E THE MAIN ISSUE OF TP ADJUSTMENT HAS ALREADY BEEN REMITTED TO THE FILE OF THE TPO, THE TPO SHALL CONSIDER AND MAKE THE TP ADJUSTM ENT ONLY TO MA NO40 OF 2020 COMMVAULT SYSTEMS INDIA P LTD HYDERABAD PAGE 3 OF 3 THE INTERNATIONAL TRANSACTION UNDERTAKEN BY THE ASS ESSEE WITH ITS AE. THEREFORE, THE M.A. FILED BY THE ASSESSEE IS AL LOWED. 6. IN THE RESULT, M.A. FILED BY THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH NOVEMBER, 2020. SD/- SD/- (D.S. SUNDER SINGH) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 20 TH NOVEMBER, 2020. VINODAN/SPS COPY TO: 1 COMM VAULT SYSTEMS (INDIA) P LTD 5 TH FLOOR, PLOT NO.39, PHASE II, BLOCK A, ANANTH INFO PARK, HITECH PARK, MADHAPUR, H YDERABAD 2 DY.CIT, CIRCLE 1(2) AAYAKAR BHAVAN, HYDERABAD 500 004 3 DIRECTOR OF INCOME TAX (IT & TP) HYDERABAD 4 PR. CIT 1 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER