Sutherland Healthcare Solutions Pvt.Ltd., (formerly known as Apollo Health Street Ltd), Hyd, Hyderabad V. DCIT, Circle-3(2), Hyderabad, Hyderabad

MA 54/Hyd/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4339 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 26 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2011-2012
• Appeal Filed On: 16-03-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y.V.S.T. SAI
• Keywords: Transfer pricing; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER M.A. No.54/HYD/2022 (Arising out of ITA No.505/Hyd/2016) Assessment Year: 2011-12 Sutherland Healthcare Solutions Private Ltd., (Formerly known as Apollo Health Street Ltd), Hyderabad [PAN: AADCA4278N] Vs Dy.Commissioner of Income Tax, Circle-3(2), Hyderabad (Applicant) (Respondent) Assessee by: Shri Ravi Bharadwaj, Revenue by: Shri Y.V.S.T.Sai, CIT-DR Date of hearing: 13/05/2022 Pronouncement on: 13/05/2022 ORDER PER K. NARASIMHA CHARY, JM: By way of this Miscellaneous Application, assessee seeks a clarification that vide common order dt.11/03/2020 in ITA Nos. 505/Hyd/2016 & 213/Hyd/2017, the Tribunal observed in respect of AY.2012-13 that in tune with the view taken for the earlier AYs.2009-10 and 2010-11, for the AY.2012-13 also the learned TPO had to accept the ALP in respect of corporate guarantee commission @0.92% and for such MA No.54/Hyd/2022 Page 2 of 4 computation, the issue was remitted to the file of AO/TPO; but, in so far as AY. 2011-12 is concerned, such observation is conspicuous by its absence. He submitted that under such circumstances, though the Ld.AO passed consequent order in respect of AY.2012-13, no such order was passed in respect of AY.2011-12. 2. Learned DR does not dispute that in respect of AY.2011-12 also, there are grounds relating to the TP adjustment on corporate guarantee and as a matter of fact, the findings of the Tribunal to remand this issue to the file of Ld.AO/TPO for re-computation of the same by accepting 0.92% as the ALP, equally applies to the AY.2011-12 also inasmuch as the Tribunal observed for AY.2011-12 that there are other corporate tax issues and these issues are also set aside to the file of learned AO for verification of the claim of the assessee and to grant relief. Learned DR submits that in as much as observations of the Tribunal in respect of the TP adjustment and corporate guarantee equally applies to both the years, there is no need to give any separate clarification. 3. We have gone through the record in the light of the submissions made on either side. There is no dispute that the observations of the Tribunal in respect of the TP adjustment on corporate guarantee are equally applicable for AYs.2011-12 and 2012-13. However, at paragraph No.5 of the order, it reads that for the assessment year under consideration, the issue had to go back to the file of learned AO/TPO for re-computation of the TP adjustment on corporate guarantee issue by accepting 0.92% as the ALP thereon. Since it is not clearly coming out of the order, we deem it just and proper to clarify that the same is applicable MA No.54/Hyd/2022 Page 3 of 4 with equal force for the AY.2012-13 also. With this clarification, the MA is allowed. Order pronounced in the open court on this the 13 th day of May, 2022 Sd/- Sd/- (RAMA KANTA PANDA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER TNMM Hyderabad, Dated: 13/05/2022 MA No.54/Hyd/2022 Page 4 of 4 Copy forwarded to: 1. Sutherland Healthcare Solutions Private Ltd., (Formerly known as Apollo Health Street Ltd), 99LH, 9 th and 10 th Floors, IT and ITES SEZ, Manikonda Village, Rajendra Nagar Mandal, Ranga Reddy District, Hyderabad. 2. Dy.Commissioner of Income Tax, Circle-3(2), Hyderabad. 3. Dispute Resolution Panel (DRP), Bengaluru. 4. Director of Income Tax (IT & TP), Hyderabad. 5. Addl.Commissioner of Income Tax (Transfer Pricing), Hyderabad. 6. DR, ITAT, Hyderabad 7. GUARD FILE TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD