MICROSOFT GLOBAL SERVICES CENTRE (INDIA) PRIVATE LIMITED,HYDERABAD V. DCIT, CIRCLE-5(1), HYDERABAD

MA 32/HYD/2024

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The case involves Microsoft Global Services Centre (India) Private Limited, which filed a miscellaneous application against the Deputy Commissioner of Income Tax, Circle-5(1), Hyderabad. The application arose from an earlier Tribunal order where certain grounds of appeal concerning TDS credit and related tax adjustments were inadvertently omitted. The assessee, represented by Sri Parth, Advocate, argued that the Tribunal's failure to address these grounds rendered the order defective and subject to rectification. The Department, represented by Dr. Sachin Kumar, Sr. LD.AR, did not object to the application. The Tribunal acknowledged the oversight and recalled the order for the limited purpose of adjudicating the omitted grounds.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398001 (ITAT-HYDERABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing; TDS
• Section: 234B

Judgement Text

"आयर अपीलीय न्यायाधिकरण में, हैदराबाद ‘बी’ बेंच, हैदराबाद IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ B ‘ Bench, Hyderabad श्री मंजूनाथ जी, माननीय लेखा सदस्य एवं श्री रवीश सूद, माननीय न्याययक सदस्य SHRI G. MANJUNATHA, HON’BLE ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, HON’BLE JUDICIAL MEMBER (Through Hybrid Hearing) MA: 32/Hyd/2024 (In आयकरअपीलसं./I.T.A.No.251/Hyd/2021) (निर्धारण वर्ा/ Assessment Year: 2016-17) Microsoft Global Services Centre (India) Private Limited, Hyderabad. PAN: AAECM2477L Vs. Deputy Commissioner of Income Tax, Circle-5(1), Hyderabad. (अपीलधर्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented by : Sri Parth, Advocate राजस्व का प्रतततितित्व/ Department Represented by : Dr. Sachin Kumar, Sr. LD.AR सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 21/03/2025 घोषणा की तारीख/ Date of Pronouncement : 02/06/2025 O R D E R प्रतत रवीश सूद, जे.एम./PER RAVISH SOOD, J.M. The present miscellaneous application filed by the assessee company arises from the order passed by the Tribunal in ITA No. 251/Hyd/2021, dated 27/03/2024. 2. The assessee company in its aforesaid application has stated that as the Tribunal while disposing of its appeal had failed to adjudicate the 2 Microsoft Global Services Centre (India) P Ltd MA 32/HYD/2024 “Grounds of Appeal Nos. 4 and 5”, therefore, the same had rendered the order passed while disposing of the appeal as suffering from a mistake, which being apparent from the record has rendered the same amenable for rectification U/s. 254(2) of the Act. 3. Sri Parth, Learned Counsel for the assessee company (in short “ld.AR”) at the threshold of hearing of the application, submitted, that the assessee company in the course of the appellate proceedings, had vide its letter dated 04/08/2023, withdrawn certain grounds of appeal which related to transfer pricing issues and had filed modified grounds of appeal. The ld.AR submitted that though the Tribunal while disposing of the appeal had at Para 11 of its order taken cognizance of the modified Grounds of Appeal, but, it had inadvertently confined its adjudication only to Ground No.3 i.e., the issue regarding a transfer pricing adjustment and had failed to deal with the “Grounds of Appeal No. 4 & 5” i.e., regarding Corporate Tax issues. The ld.AR to buttress his claim has taken us through the order passed by the Tribunal. 4. Per contra, the Learned Departmental Representative (“Ld. DR”) did not raise any objection to the aforesaid contention of the assessee’s counsel. 5. We have thoughtfully considered the application filed by the assessee applicant and find substance in the same. Ostensibly, the 3 Microsoft Global Services Centre (India) P Ltd MA 32/HYD/2024 assessee company as per its letter dated 04/08/2023 had, for the reasons therein stated, modified its grounds of appeal and enclosed the same as Annexure-2. Although the Tribunal while disposing of the appeal had culled out the modified grounds of appeal that were raised by the assessee company, but, it had inadvertently confined its adjudication to the “Ground of Appeal No. 3” i.e., pertaining to a transfer pricing issue and not dealt with the “Grounds of Appeal No. 4 & 5”, which read as under: “4. That on the facts and in law, the A.O. was not justified and has erred in not considering claim of TDS credit of Rs. 5,19,455/- made by the company during the assessment proceedings and not considering the directions of Ld DRP in relation to grant of TDS credit. 5. That on the facts and in law, on disposal of this appeal material adjustment would be required in computing total income tax, interest U/s. 234B of the Act. Necessary directions may please be given to the A.O. in this regard.” 6. As the Tribunal had while disposing off the appeal inadvertently omitted to adjudicate the modified “Grounds of Appeal No. 4 & 5” that were raised by the assessee appellant, therefore, the same had rendered its order passed while disposing of the appeal in ITA No. 251Hyd/2021, dated 27.03.2024 as suffering from a mistake, which being glaring, patent, obvious and apparent from record had rendered the same amenable for rectification U/s. 254(2) of the Act. We thus, in terms of our aforesaid observations recall the order passed by the Tribunal in ITA No. 251/Hyd/2021, dated 27/03/2024 but for the limited purpose 4 Microsoft Global Services Centre (India) P Ltd MA 32/HYD/2024 to adjudicate the “Grounds of Appeal No. 4 & 5” which had remained omitted to be adjudicated while disposing of the appeal. 7. The order passed by the Tribunal in ITA No. 251/Hyd/2021, dated 27/03/2024 is recalled for the aforesaid limited purpose. The registry is directed to fix the matter in the normal course after putting both parties to notice. 8. Resultantly, the Miscellaneous Application filed by the assessee company is allowed in terms of our aforesaid observations. Order pronounced in the Open Court on 2nd June, 2025. Sd/- Sd/- (मंजूनाथ जी) (MANJUNATHA G.) लेखध सदस्य/ACCOUNTANT MEMBER Sd/- (श्री रवीश सूद) (RAVISH SOOD) न्यधनयक सदस्य/JUDICIAL MEMBER Sd/- Hyderabad, dated 02.06.2025. *OKK/SPS आदेशकी प्रतततिति अग्रेतषत/ Copy of the order forwarded to:- 1. तिर्ााररती/The Assessee : Microsoft Global Services Centre (India) Private Limited, Building-1, Microsoft Campus, Gachibowli, Hyderabad- 500032. 2. राजस्व/ The Revenue : Deputy Commissioner of Income Tax, Circle-5(1), Hyderabad. 3. The Principal Commissioner of Income Tax (Central), Hyderabad. 4. तवभागीयप्रतततितर्, आयकर अिीिीय अतर्करण, हैदराबाद / DR, ITAT, Hyderabad 5. The Commissioner of Income Tax 6. गार्ाफ़ाईि / Guard file "