NTT D ata FA Insurance Systems (I)P ltd, Bangalore V. Deputy Commissioner of Income tax, Bangalore

MA 88/BANG/2015

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 3824 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-01-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 31-12-2015
• Assessment Year: misc
• Appeal Filed On: 05-08-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: RISHI HARLALKAR
• Keywords: Related party transaction

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, BANGALORE BEFORE SHRI VIJAYPAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER M.A.NO.88 /BANG/ 2015 ( IN IT(TP)A NO.1311 /BANG/ 2010) (ASSESSMENT YEARS : 2006 - 07) M/S NTT DATA FA INSUR ANCE SYSTEMS IND. PVT. LTD. OZONE MANAY TECH PARK, B BLOCK, 3 RD FLOOR, GARVEBHAVIPLYA, HOSUR ROAD, BANGALORE - 560 068. PAN NO.AAACF 9123 A VS. PETITIONER THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 5(1)(1) ERSTWHILE CIRCLE - 11 (3), BANGALORE RESPONDENT PETITIONER BY : SHRI RISHI HARLALKAR, CA RESPONDENT BY : SMT. NEERA MALHOTRA, CIT DATE OF HEARING : 01/01/2016 DATE OF PRONOUNCEMENT : 20 /01/2016 O R D E R PER I NTUR I RAMA RAO, AM : THIS MISCELLANEOUS PETITION WAS FILED BY THE ASSESSEE - COMPANY SEEKING RECTIFICATION OF THE ORDER PASSED BY THIS TRIBUNAL IN IT(TP)A NO.1311(B)/2010 DATED 20 - 03 - 2015 FOR THE ASSESSMENT YEAR 2006 - 07. IT IS STATED IN THE MP THAT APPLYING THE RATIO LAID DOWN BY THIS TRIBUNAL VIDE PARA - 8 TO 10 OF THE MP NO .8 8 /BANG/201 5 PAGE 2 OF 3 IMPUGNED ORDER THAT THE FOLLOWING SIX COMPANIES BE REJECTED BEING COMPARABLE, AS THE TURNOVER IS MORE THAN 200 CRORES. I. INFOSYS TECHNOLOGIES LTD. II. FLEXTRONICS SOFTWARE SYSTEMS LTD., III. IGATE GLOBA L SOLUTIONS LTD. IV. MINDTREE CONSULTING LTD., V. SASKEN COMMUNICATION LTD. VI. PERSISTENT SYSTEMS LTD. SIMILARLY, IT IS STATED IN THE MP THAT PARAS.14 & 15 OF THE ORDER MAY BE AMENDED TO EXCLUDE THE COMPANIES VIZ., I. M/S GEOMETRIC SOFTWARE LTD., II. M/S AZTEC SOFTWARE LTD III. M/S MEGASOFT LTD., APPLYING THE FILTER OF RELATED PARTY TRANSACTIONS OF MORE THAN 15%. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND MERIT IN THE SUBMISSIONS OF THE LEARNED COUNSEL THAT THE TRIBUNAL HAVING AP PLIED THE FILTER OF MORE THAN 200 CRORES SHOULD BE EXCLUDED, AS THE SAME SHOULD HAVE BE EN APPLIED TO ALL THE COMPARABLES FINALLY - CHOSEN FOR COMPUTING THE ARM S LENGTH PRICE (ALP). SIMILARLY, IN THE CASE OF FILTER OF RPT MORE THAN 15% , THE SAME FILTER SHO ULD BE APPLIED FOR ALL THE COMPARABLES FINALLY CHOSEN FOR COMPUTING THE ALP . THEREFORE, WE REMIT THE MATTER BACK TO THE FILE OF THE AO/TPO TO APPLY THE TURNOVER FILTER OF MORE THAN 200 CRORES AS WELL AS FILTER OF RPT 15% TO ALL THE COMPARABLES FINALLY CH OSEN FOR THE PURPOSE OF COMPUTING THE ALP. MP NO .8 8 /BANG/201 5 PAGE 3 OF 3 3. IN THE RESULT, THE M.P FILED BY THE ASSES S EE - COMPANY IS PARTLY ALLOWED IN THE ABOVE LINES FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 20 TH DAY OF JANUARY, 2016 SD/ - SD/ - ( VIJAY PAL RAO ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BANGALORE D A T E D : 20 /01/2016 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - II BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE