M/s LG Soft India Pvt Ltd , Bangalore V. Deputy Commissioner of Income Tax Circle-4(1)(1), Bangalore

MA 95/BANG/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9474 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 19-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Assessee Lawyers: K R VASUDEVAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N.V VASUDEVAN , VICE PRESIDNET AND SHRI B.R BASKARAN, ACCOUNTANT MEMBER MP NO.95/BANG/2019 (IN IT(TP)A NO.3122/BANG/2018) ASSESSMENT YEAR : 2014-15 M/S LG SOFT INDIA PVT. LTD., EMBASSY TECH SQUARE, MARATHAHALLI, SARJAPUR OUTER RING ROAD, BENGALURU-560 103. PAN AAACL 3009 P VS. THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-4(1)(1), BENGALURU. APPELLANT RESPONDENT APPELLANT BY : SHRI K.R VASUDEVAN, ADVOCATE RESPONDENT BY : SMT. R PREMI, JCIT (DR) DATE OF HEARING : 27.09.2019 DATE OF PRONOUNCEMENT : 27.09.2019 O R D E R PER B.R BASKARAN, ACCOUNTANT MEMBER THE ASSESSEE HAS FILED THIS MISCELLANEOUS APPLICATI ON WITH THE SUBMISSION THAT THERE ARE MISTAKES APPARENT FROM RE CORD IN THE ORDER DATED 28-05-2019 PASSED IN IT (TP) A NO.3122/ BANG/2018 FOR ASSESSMENT YEAR 2014-15. 2. THE LD A.R SUBMITTED THAT THE ASSESSEE IS EN GAGED IN THE BUSINESS OF RENDERING SOFTWARE DEVELOPMENT SERVICES TO ITS AE. HE SUBMITTED THAT THE ISSUE RELATING TO TRANSFER PRICI NG ADJUSTMENT MADE BY THE AO/TPO WAS CONTESTED BEFORE THE TRIBUNA L. THE LD A.R SUBMITTED THAT THE ASSESSEE HAD SOUGHT EXCLUSIO N OF SIX M.P NO.95 /BANG/2019 PAGE 2 OF 5 COMPARABLE COMPANIES, WHICH, INTER ALIA, INCLUDED L & T INFOTECH LTD. HE SUBMITTED THAT THE TRIBUNAL HAS ADJUDICAT ED FIVE COMPARABLES, BUT OMITTED TO ADJUDICATE COMPARABLE C OMPANY NAMED L & T INFOTECH LTD. THE LD A.R SUBMITTED T HAT THE ASSESSEE HAD FURNISHED A DETAILED CHART MENTIONING THE REASONS FOR EXCLUSION OF THE ABOVE SAID COMPANY AND ALSO PLACED ITS RELIANCE ON THE DECISION RENDERED BY THE CO-ORDINATE BENCH IN T HE CASE OF METRIC STREAM INFOTECH INDIA P LTD (IT(TP)A NO.1418 & 2735 /BANG/2017). ACCORDINGLY THE LD A.R SUBMITTED THAT NON-ADJUDICAT ION OF ABOVE SAID COMPARABLE IS A MISTAKE APPARENT FROM RECORD A ND ACCORDINGLY PRAYED THAT THE MISTAKE BE CORRECTED. 3. THE ASSESSEE HAD SOUGHT INCLUSION OF A COMPA RABLE COMPANY NAMED I2T2 INDIA LTD. THE TRIBUNAL HAS ADJUDICAT ED THE SAME IN PARAGRAPH 11 AND 12 OF THE ORDER. HOWEVER, THE NAM E OF COMPANY HAS BEEN ERRONEOUSLY MENTIONED AS T2T2 INDIA LTD INSTEAD OF I2T2 INDIA LTD. ACCORDINGLY HE PRAYED THAT THE A BOVE SAID MISTAKE MAY ALSO BE CORRECTED. 4. WE HEARD LD D.R AND PERUSED THE RECORD. WE FIND MERIT IN THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE. ACCO RDINGLY FOLLOWING PARAGRAPH IS INSERTED AFTER PARAGRAPH 10 IN THE IMP UGNED ORDER OF THE TRIBUNAL, WHICH WILL ADJUDICATE THE ISSUE RELAT ING TO L & T INFOTECH LTD:- 10A THE ASSESSEE HAS SOUGHT EXCLUSION OF M/S L & T INFOTECH LTD ON THE GROUND THAT THERE WERE EXTRAORD INARY EVENTS DURING THE YEAR, IT POSSESSES BRAND AND INTA NGIBLES, IT M.P NO.95 /BANG/2019 PAGE 3 OF 5 HAS NOT PROVIDED SEGMENTAL INFORMATION AND IT HAS G OT SUB- CONTRACTING EXPENSES. THE LD A.R SUBMITTED THAT TH E ABOVE SAID COMPANY HAS BEEN EXCLUDED BY THE CO-ORDINATE B ENCH IN THE CASE OF METRIC STREAM INFOTECH P LTD (IT(TP)A N O.1418 & 2735/BANG/2017) RELATING TO AY 2013-14 AND ALSO IN THE CASE OF ELECTRONICS FOR IMAGING INDIA P LTD (IT(TP) A NO.1506/BANG/2016 RELATING TO AY 2011-12). THE LD A.R SUBMITTED THAT THERE IS NO CHANGE IN FACTS IN THIS YEAR ALSO AND ACCORDINGLY PRAYED FOR EXCLUSION OF THE ABOVE S AID COMPANY. 10A.1 WE HEARD LD D.R AND PERUSED THE RECORD. WE NOTICE THAT M/S L & T INFOTECH LTD HAS BEEN EXCLUDED BY TH E CO- ORDINATE BENCH IN THE CASE OF METRIC STREAM INFOTEC H P LTD (SUPRA) FOR AY 2013-14 AND ALSO IN THE CASE OF ELEC TRONICS FOR IMAGING INDIA P LTD (SUPRA) FOR AY 2011-12. THE LD A.R SUBMITS THAT THERE IS NO CHANGE IN FACTS PREVAILING IN THE CURRENT YEAR VIS-A-VIS THE YEARS CONSIDERED BY THE CO-ORDINATE BENCHES IN THE ABOVE SAID CASES. ACCORDINGLY, FOLL OWING THE ABOVE SAID DECISIONS, WE DIRECT EXCLUSION OF M/S L & T INFOTECH LTD. 5. IT IS POINTED OUT THAT THE NAME OF COMPANY H AS BEEN WRONGLY MENTIONED AS T2T2 INDIA LTD INSTEAD OF I2T2 INDI A LTD. ACCORDINGLY WE DIRECT THAT THE NAME OF THE COMPANY MENTIONED AS T2T2 INDIA LTD, WHEREVER IT OCCURS IN PARAGRAPH 1 1 AND 12 OF THE IMPUGNED ORDER SHALL BE SUBSTITUTED BY THE NAME I2 T2 INDIA LTD. M.P NO.95 /BANG/2019 PAGE 4 OF 5 6. IN THE RESULT, THE MISCELLANEOUS APPLICATION OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH SEPTEMBER, 2019. SD/- (N.V VASUDEVAN) VICE PRESIDENT SD/- (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, 27TH SEPTEMBER, 2019. / VMS / COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE. M.P NO.95 /BANG/2019 PAGE 5 OF 5 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DICTATION NOTE ENCLOSED DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. .. 14. DICTATION NOTE ENCLOSED