THE PR. COMMISSIONER OF INCOME TAX vs. M/S AUTODESK INDIA PVT LTD

THE PR. COMMISSIONER OF INCOME TAX CIT (A), 5TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU- 560095.

THE INCOME TAX OFFICER WARD- 1(1)(1) PRESENT ADDRESS: DCIT, CIRCLE 1(1)(1) 2ND FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU-560095. …APPELLANTS (BY SRI. RAVIRAJ Y.V., ADV. A/W SRI DILIP M., ADV.)

The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (for short, ‘the Act’) questioning the correctness and legality of order dated 23.09.2021 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (for short, ‘Appellate Authority’) in IT(TP)A.No.42/Bang/2019 for the assessment year

Whether on the facts and in the circumstances of the case, the Tribunal is right in law in directing the Transfer Pricing Officer to exclude comparables even when the TPO had considered the said comparables after satisfying all the required tests and ignoring the reasoning's assigned by Transfer Pricing Officer ?

Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in nature in directing Transfer Pricing Officer to grant working capital adjustment and excluding comparables ignoring findings of Transfer Pricing Officer and Dispute Resolution Panel?

Whether on the facts and in the circumstances of the case, the Tribunal is right in holding that there is no basis for the Transfer Pricing Officer to grant working capital adjustments after verification of claim made by assessee when the Transfer Pricing Officer has rightly verified and examined all the materials on record?

Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that M/s.Infosys Ltd cannot be held as comparable-company on the ground of high turnover when the same cannot be criteria for excluding comparable as per Rule 10B of I.T. Rules?”

It is noticed that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal would not be maintainable at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue.

On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the

In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding.