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

SA 145/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5951 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 20 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 11-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PADMA MEENAKSHI JT BENGALURU
• Assessee Lawyers: JINESH R BHAGDEV CAS; HARIPRASAD NAYAK
• Keywords: Transfer pricing; International transaction; Application of stay
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER S.P. NO.145/BANG/2018 [IN ITA NO. 2055/BANG/2016] ASSESSMENT YEAR : 2012 - 13 M/S. MOBILY INFOTECH INDIA PVT. LTD., 1 ST FLOOR, RMZ NEXT, CAMPUS 2A & 2C WHITEFIELD ROAD, WHITEFIELD, BENGALURU 560 066. PAN: AAFCM 0601F VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(1)(2), BENGALURU. APP L IC ANT RESPONDENT A PPL IC ANT BY : SHRI HARIPRASAD NAYAK, & SHRI JINESH R. BHAGDEV, CAS RE SPONDENT BY : SMT. PADMAMEENAKSHI, JT.CIT(DR)(ITAT), BENGALURU. DATE OF HEARING : 18 . 0 5 .201 8 DATE OF PRONOUNCEMENT : 18 . 0 5 .201 8 O R D E R PER N.V. VASUDEVAN, JUDICIAL MEMBER THIS IS AN APPLICATION FILED BY THE ASSESSEE PRAY ING FOR AN ORDER OF STAY OF RECOVERY OF OUTSTANDING DEMAND OF RS.2,10,8 6,390. 2. THE OUTSTANDING DEMAND ARISES OUT OF ADDITION MA DE TO THE TOTAL INCOME OF THE ASSESSEE, CONSEQUENT TO DETERMINATION OF ARMS LENGTH PRICE (ALP) OF AN INTERNATIONAL TRANSACTION ENTERED INTO BY THE ASSESSEE WITH ITS ASSOCIATED ENTERPRISE (AE). THE ASSESSEE HAS CHALLE NGED THE DETERMINATION OF ALP ON THE GROUND THAT COMPARABLES CHOSEN BY THE TPO WERE NOT PROPER AND THAT TURNOVER FILTER WAS NOT PR OPERLY APPLIED. BESIDES SP NO.145/BANG/2018 PAGE 2 OF 3 THE ABOVE, THERE IS ALSO A CHALLENGE TO THE PARAMET ERS APPLIED WHILE SELECTING THE COMPARABLES. IT HAS ALSO BEEN SUBMIT TED THAT MAT CREDIT AVAILABLE TO THE ASSESSEE FOR THE AYS 2011-12 & 201 2-13 TOTALLING RS.53,34,947 & RS.52,84,397 RESPECTIVELY HAVE NOT B EEN GIVEN CREDIT. 3. WE HAVE HEARD THE PARTIES ON THE EXISTENCE OF A PRIMA FACIE CASE, BALANCE OF CONVENIENCE AND RELATIVE HARDSHIP. KEEP ING IN MIND ALL THE PARAMETERS FOR GRANT OF STAY, WE ARE OF THE VIEW TH AT IT WOULD BE JUST AND PROPER TO GRANT AN ORDER OF STAY TO THE ASSESSEE, S UBJECT TO PAYMENT OF RS.15 LAKHS ON OR BEFORE 31.05.2018. SUBJECT TO T HE CONDITION AS STATED ABOVE, THERE SHALL BE AN ORDER OF STAY FOR THE OUTS TANDING DEMAND FOR A PERIOD OF SIX MONTHS FROM THE DATE OF THIS ORDER, O R TILL THE DISPOSAL OF THE APPEAL; WHICHEVER IS EARLIER. 4. THE APPLICATION OF ASSESSEE FOR GRANT OF MAT CRE DIT FOR AYS 2009-10 & 2010-11 VIDE APPLICATION U/S. 154 OF THE ACT DATE D 15.02.2017 IS STATED TO BE STILL PENDING. THE AO IS REQUESTED TO DISPOSE O F THE SAID APPLICATION EXPEDITIOUSLY. 5. THE STAY APPLICATION IS ACCORDINGLY ALLOWED IN T HE TERMS INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT ON THIS 18 TH DAY OF MAY, 2018. SD/- SD/- ( INTURI RAMA RAO ) ( N.V. VASUDEVAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 18 TH MAY, 2018. / D ESAI S MURTHY / SP NO.145/BANG/2018 PAGE 3 OF 3 COPY TO: 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.