M/s. Altair Engineering India Private Limited, Bengaluru V. Assistant Commissioner Of Income Tax, Circle-1(1)(1), Bangalore

MA 73/BANG/2023

AI Insights

M/s. Altair Engineering India Pvt. Ltd. filed a Miscellaneous Petition (MP No.73/Bang/2023) seeking rectification of an earlier order in IT(TP)A No.1025/Bang/2022. The rectification was necessary due to incorrect company names and references in the Tribunal's previous order. The Tribunal acknowledged the errors and corrected the names to 'Manipal Digital Systems Pvt. Ltd.' and ensured that the references were accurate, as these companies were functionally different and not comparable to an ITeS company like the assessee. The Tribunal's decision was based on precedents and the functional differences cited in the submissions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129995 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 15-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 15-03-2023
• Other Referred Cases: Global E-business Operations Pvt. Ltd. vs. DCIT [TS-796-ITAT-2022(Bang)-TP], M/s. Schlumberger India Technology Centre Private Ltd. vs. DCIT [TS-473-ITAT-2022 (PUN)- TP], Credence Resource Management (P) Ltd. vs ACIT [2022] 138 taxmann.com 543 (Pune-Trib.)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHINI BESAGANNI
• Assessee Lawyers: TATA KISHNA
• Keywords: Rectification of order

Judgement Text

MP No.73/Bang/2023 M/s. Altair Engineering India Pvt. Ltd., Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER M.P. No.73/Bang/2023 IT(TP)A No.1025/Bang/2022 Assessment Year: 2018-19 M/s. Altair Engineering India Pvt. Ltd. No.46, First Floor, Prestige Trade Tower Palace Road, Municipal Ward No.77 Sampangiramanagar Bangalore 560 001 PAN NO : AABCA1860A Vs. ACIT Circle-1(1)(1) Bangalore APPELLANT RESPONDENT Appellant by : Shri Tata Kishna, A.R. Respondent by : Smt. Priyadarshini Besaganni, D.R. Date of Hearing : 16.06.2023 Date of Pronouncement : 16.06.2023 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: This MP filed by the assessee seeking rectification of order in IT(TP)A No.1025/Bang/2022 dated 9.1.2023. The ld. A.R. submitted that in page 30 para 32 in 5 th line, it was wrongly mentioned as “Domex E Data Pvt. Ltd.” instead of “Manipal Digital Systems Pvt. Ltd.” and similarly, in page 31, para 33 in 6 th line it was mentioned as “this company” without mentioning the name of the company and the same may be rectified. MP No.73/Bang/2023 M/s. Altair Engineering India Pvt. Ltd., Bangalore Page 2 of 3 2. We have heard the rival submissions and perused the materials available on record. There is a merit in the argument of ld. A.R. Accordingly, para 32 & 33 of the aforesaid order are to be read as follows: “32. Learned Counsel for the assessee submitted that out of the remaining 4 comparable companies Manipal Digital Systems Pvt. Ltd., and Domex E Data Pvt. Ltd., should be excluded for the reason that these 2 companies are functionally different and cannot be compared to an ITeS company such as the assessee. In so far as Manipal Digital Systems Pvt. Ltd. is concerned, it is the stand of the assessee that this company performs diversified functions like ITeS premedia work and e-book/other boom distribution. It was submitted that no segmental information of the various segments or atleast ITeS segment is available. Reliance was placed on the following decisions of the ITAT whereby Tribunal has held that this company cannot be compared with ITeS company. Global E-business Operations Pvt. Ltd. vs. DCIT [TS-796-ITAT-2022(Bang)-TP] AY 2016-17 M/s. Schlumberger India Technology Centre Private Ltd. vs. DCIT [TS-473-ITAT-2022 (PUN)- TP] AY 2016-17 Credence Resource Management (P) Ltd. vs ACIT [2022] 138 taxmann.com 543 (Pune-Trib.) for AY 2016-17 33. The plea of the assessee was however rejected by the DRP on the ground that ITeS includes BPO and KPO services and that the contentions of the assessee were based on website information which cannot be regarded MP No.73/Bang/2023 M/s. Altair Engineering India Pvt. Ltd., Bangalore Page 3 of 3 as correct. Learned DR relied on the order of the DRP. We have carefully considered the rival submissions. We find that in the decision cited by the learned DR, Tribunal has held that Manipal Digital Systems Pvt. Ltd. is not comparable with an ITeS company owing to those companies being in the field of KPO which cannot be equated or compared with a company rendering ITeS.” 3. There is no other change in this order and there is no change in the result of the appeal also. The MA filed by the assessee is allowed. 4. In the result, the MA filed by the assessee is allowed. Order pronounced in the open court on 16 th June, 2023 Sd/- (George George K. ) Judicial Member Sd/- (Chandra Poojari) Accountant Member Bangalore, Dated 16 th June, 2023. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(Judicial) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.