JUNIPER NETWORKS PVT LTD.,MUMBAI vs. ASST CIT CIRCLE-2 (4), MUMBAI

PDF · subscribers
ITA 7755/MUM/2019Status: DisposedITAT Mumbai30 June 2023AY 2015-163 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal allowed the assessee's request to withdraw the appeal. This was based on the fact that the transfer pricing dispute was resolved through a MAP resolution, which the assessee had accepted.

What were the facts?

The assessee company filed an appeal against an order related to transfer pricing adjustments for Software Development Services, ITeS, and ESPP. The assessee had approached Competent Authorities under the India-US Tax Treaty for a Mutual Agreement Procedure (MAP) to resolve these disputes.

What were the issues?

Whether an appeal can be withdrawn when the underlying transfer pricing issue has been resolved through a Mutual Agreement Procedure (MAP) under a tax treaty.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “K” BENCH, MUMBAI

Before: SHRI ABY T. VARKEY, JM & AMARJIT SINGH, AM

For Appellant: Ms. Komal Mehta
Hearing: 19/06/2023Pronounced: 30/06/2023

O R D E R

PER ABY T. VARKEY, JM:

1.

This is an appeal preferred by the assessee company against the order passed u/s 143(3) r.w.s 144C(13) of the Income Tax Act, 1961 (hereinafter “the Act”) by AO dated 17.10.2019 for AY 2015-16 pursuant to the Ld. Dispute Resolution Panel (DRP) direction on 21.08.2019.

2.

The assessee in this case had filed its return of income declaring total income of Rs.174,96,10,270/-. Later on, the case was selected for scrutiny and the AO referred certain issues to the Transfer Pricing Officer (TPO) who made adjustment of Rs.74,31,05,490/- for Software Development Services (SDS), Information Technology Enable Services (ITeS) and mark-up on Employee Stock Purchase Plan (ESPP). According to the Ld. AR, the assessee in order to resolve the transfer pricing disputes in respect of transactions with its Associated Enterprise (AE) (i.e. M/s. JNI), it had approached the Competent Authorities as per Article 27 (MAP) of the India United States Tax 2 A.Y. 2015-16 Juniper Networks India Treaty. And the MAP proceeding was in respect of Transfer Pricing adjustment made to the income of the assessee viz, International transactions of SDS, ITeS and mark-up on ESPP costs between the assessee and JNI. Pursuant to the same, the assessee received the resolution of dispute under MAP between two Competent Authorities on 16.02.2023 and the assessee has accepted the MAP Resolution. In the light of this fact, according to the Ld. AR, as mandated by Rule 44G of the Income Tax Rule, 1962 (herein after the Rules) in order to give effect to the resolution, the assessee had to withdraw the grounds of appeal

filed before this Tribunal for issues covered under MAP. And accordingly had filed before us (Tribunal) letter dated 17.03.2023 for withdrawal of the appeal for AY. 2015-16. In the light of the above discussion, since the assessee has resolved the issue of transfer pricing by accepting the MAP resolution dated 16.02.2023, the department has no objection for withdrawal of the appeal; and therefore, assessee’s request for withdrawal of appeal for AY. 2015-16 pursuant to the MAP resolution is allowed.

More judgments on Section 144C(13)

All 3,426 judgments and leading authorities on Section 144C(13) →

Recent GST High Court judgments

Search GST case law →