M/s Maxim India Integrated Circuit Design Pvt. Ltd., Bangalore V. ITO, Ward-12(1), Bangalore

MA 63/BANG/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3775 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 28-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI B.R. BASKARAN , ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER M.P. NO. 63 /BANG/201 9 (IN IT (TP) A NO. 1305 /BANG/201 1 ) (ASSESSMENT YEAR: 20 07 - 08 ) O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED MISC. PETITION UNDER RULE 2 4A OF THE ITAT RULES IN TRIBUNAL ORDER IT (TP) A NO. 1305/ BANG/201 1 ORDER DT.29.03.2019. 2. AT THE TIME OF HEARING, THE LEARNED AUTHORISED REPRESENTATIVE MADE SUBMISSIONS ON THE MISC. PETITION AND PRAYED FOR THE M/S. MAXIM INDIA INTEGRATED CIRCUIT DESIGN PVT. LTD., NO.132/133, WEST WING, 2 ND FLOOR, DOMLUR POST, OFF OLD AIRPORT ROAD, BENGALURU 560 037 PAN AACCM 9437E VS. INCOME TAX OFFICER, WARD 1 2 (1) , BENGALURU. ( PETITIONER ) (RESPONDENT) PETITIONER BY: SHRI PADAMCHAND KHINCHA, C.A . RESPONDENT BY: S MT. R. PREMI, J CIT (D.R) DATE OF HEARING : 25 .10 .2019 DATE OF PRONOUNCEMENT : 01 .10. 2019 2 M P NO.63/BANG/2019 DIRECTION S OF THE TRIBUNAL O N EXCLUSION OF COMPARABLES I.E. KALS INFORMATION SYSTEMS LIMITED AND PERSISTENT SYSTEMS LIMITED AND HAS NOT PRESSED THE COMPARABLE QUINTEGRA SOLUTIONS LTD. AND MADE SUBMISSIONS ON THE ADDITIONAL GROUND OF APPEAL RAISED BY THE ASSESSEE ON 29.08.201 8 . WE DEAL FIRST ON THE ISSUE IN RESPECT OF EXCLUSION OF TWO COMPARABLE COMPANIES I.E. KALS INFORMATION SYSTEMS LTD. REFERRED AT PAGE 28 OF THE TRIBUNAL ORDER AND PERSISTENT SYSTEMS LTD. PAGE 29 OF THE TRIBUNAL ORDER . THE LEARNED AUTHORISED REPRESENTATIVE A RGU MENT S ARE THAT THERE IS NO SPECIFIC DIRECTION S GIVEN ON THESE COMPARABLES TO ASSESSING OFFICER FOR EXCLUSION WHEREAS THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF THE TRIBUNAL. 3. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERI AL ON RECORD. WE FOUND THAT SUBMISSIONS OF THE LEARNED AUTHORISED REPRESENTATIVE ARE DULY SUPPORTED WITH PETITION S ON KALS INFORMATION SYSTEM LTD. WHICH WAS EXCLUDED REFERRED AT PAGE 27 PARA 13 OF THE ORDER. ACCORDINGLY, WE DIRECT THAT THE FOLLOWING SE NTENCE SHALL BE INSERTED AT THE END OF PARAGRAPH 13 OF THE ORDER. 3 M P NO.63/BANG/2019 ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER/TPO FOR EXCLUSION OF KALS INFORMATION SYSTEMS LTD. FROM THE FINAL LIST OF COMPARABLES SELECTED FOR DETERMINATION OF ALP. 4. SIMILARLY, PERSISTENT SYSTEMS LIMITED WAS CONSIDRED FOR EXCLUSION BY THE TRIBUNAL AT PAGE 29 PARA 14 OF THE ORDER. ACCORDINGLY WE DIRECT THAT THE FOLLOWING SENTENCE SHALL BE INSERTED AT THE END OF PARAGRAPH 14. ACCORDINGLY, WE DIRECT THE TPO FOR EXCLUSION OF PE RSISTENT SYSTEMS LIMITED FROM THE FINAL LIST OF COMPARABLES SELECTED FOR DETERMINATION OF ALP. 5. ON THE SECOND DISPUTED ISSUE RAISED IN THE MISC. PETITION THAT THE ASSESSEE HAS RAISED ADDITIONAL GROUND OF APPEAL FILED BY THE ASSESSEE ON 28.09.2018 WHICH IS AS UNDER : 1.1 THE LOWER AUTHORITIES HAVE ERRED IN NOT GRANTING DEDUCTION UNDER SECTION 10A ON DISALLOWANCE OF RS.53,77,052 BEING INTEREST PAID ON ECB LOAN AND DEPRECIATION OF RS.43,500 ON COMPUTERS DUE EXCHANGE GAIN ADJUSTMENT. THE APPELLANT PRAYS ACCORDINGLY. 6. WE FIND T HE ADDITIONAL GROUND OF APPEAL WAS NOT ADJUDICATED BY THE TRIBUNAL AND ACCORDINGLY, WE RECALL THE IMPUGNED ORDER OF THE TRIBUNAL FOR THE LIMITED PURPOSES ADJUDICATING THE ADDITIONAL G R O U N D S. ACCORDINGLY WE DIRECT THE REGISTRY TO POST THE APPEAL FOR 4 M P NO.63/BANG/2019 HEARING FOR ADJUDICATING ADDITIONAL GROUND OF APPEAL ON 21.11 . 2019 AND INFORM THE PARTIES . WE ORDER ACCORDINGLY. 7. IN THE RESULT, THE MISC. PETITION FILED BY ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 S T N O V . , 2019. S D / - S D / - ( B.R.BASKARAN ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 1 . 1 1 . 2019. *REDDY GP COPY TO - I) THE APPELLANT II) THE RESPONDENT III) CIT (APPEALS) IV) PR. CIT V) DR, ITAT, BANGALORE VI) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE