JOINT COMMISSIONER OF INCOME TAX, SPECIAL RANGE-7, BANGALORE vs. M/S. TARGET CORPORATION INDIA PRIVATE LIMITED, BANGALORE

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ITA 657/BANG/2020Status: DisposedITAT Bangalore30 March 2023AY 2015-167 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the assessee's appeal as withdrawn due to the MAP resolution. The revenue's appeal was also dismissed as it became infructuous following the same MAP resolution.

What were the facts?

The assessee withdrew its appeal as a resolution was reached between Indian and US Competent Authorities regarding transfer pricing issues. The revenue's appeal concerned operating costs for TP adjustment, which was also covered by the MAP resolution.

What were the issues?

The primary issue was the resolution of transfer pricing disputes through a Mutual Agreement Procedure (MAP) between India and the US. The revenue's appeal also involved the classification of certain expenses as operating costs for TP purposes.

Which sections of the Income-tax Act were involved?

Not specified

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH : BANGALORE

Before: SMT. BEENA PILLAI & Ms. PADMAVATHY S

For Appellant: Shri Ankur Pai, Advocate
For Respondent: Shri D.K. Mishra, CIT(DR)(ITAT), Bengaluru
Hearing: 30.03.2023Pronounced: 30.03.2023

O R D E R Per Bench These appeals of the assessee and the revenue are against the order of the CIT(Appeals)-10, Bengaluru dated 28.2.2020 for assessment year 2015-16.

2.

The assessee vide letter dated 2.3.2023 which is reproduced below has submitted that all the grounds of appeal in IT(TP)A No.614/Bang/2020 is withdrawn for the reason that the resolution has been arrived at between Indian and US Competent Authorities in respect of the Transfer Pricing issues raised by the assessee before the Tribunal:-

IT(TP)A No.614 & 657/Bang/2020 Page 3 of 7

IT(TP)A No.614 & 657/Bang/2020 Page 4 of 7

3.

For easy of reference , copy of MAP resolution is reproduced below:-

IT(TP)A No.614 & 657/Bang/2020 Page 5 of 7

IT(TP)A No.614 & 657/Bang/2020 Page 6 of 7

4.

Accordingly, the appeal is dismissed as withdrawn.

5.

The appeal by the department is with regard to CIT(Appeals) holding certain expenses to be part of operating cost of the assessee for the purpose of TP adjustment. Since the MAP resolution entered into with competent authorities covers the TP adjustment as reproduced above, the appeal of the revenue has become infructuous and accordingly dismissed.

IT(TP)A No.614 & 657/Bang/2020 Page 7 of 7

6.

In the result, both the appeals by the assessee and the revenue are dismissed.

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