M/S. BOBST INDIA PVT.LTD,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1(1), PUNE

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ITA 1325/PUN/2018Status: DisposedITAT Pune19 November 2019AY 2014-155 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal allowed the assessee's request to withdraw the appeals. The withdrawal was permitted in light of the UAPA and the relevant provisions of the Income Tax Rules and Act.

What were the facts?

The assessee sought withdrawal of its appeals before the ITAT. This was based on entering into a Unilateral Advanced Pricing Agreement (UAPA) with the CBDT, which covered the issues in the pending appeals for the assessment years in question.

What were the issues?

Whether an assessee can withdraw appeals pending before the ITAT when the issues are covered by a subsequently entered Advanced Pricing Agreement (APA) with rollback provisions.

Which sections of the Income-tax Act were involved?

Section 92CD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “C”, PUNE

Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY

For Appellant: Shri Rajendra Agiwal
For Respondent: Shri T. Vijaya Bhaskar Reddy

PER BENCH :

These three appeals by the assessee are directed against the separate assessment orders dated 28-11-2016, 26-04-2017 & 25-06- 2018 passed by the respective Assessing Officers u/s.143(3) r.w.s.144C(13) of the Income-tax Act, 1961 (hereinafter called ‘the Act’) in relation to the assessment years 2012-13, 2013-14 & 2014- 15.

M/s. Bobst India Private Limited A.Yrs. 2012-13 to 2014-15

2.

Before us, the assessee has filed a letter dated 22-10-2019,

seeking withdrawal of the appeals. The relevant contents of such

withdrawal letter, read as under :

‘In this regard, Bobst India wishes to bring to your Honours' kind notice that it has entered into a Unilateral Advanced Pricing Agreement ('UAPA') on 04 October 2019 with the Central Board of Direct Taxes ('CBDT') for a period from Financial Year ('FY') 2014-15 to FY 2018-19 (relevant to AY 2015-16 to AY 2019-20) along with rollback years from FY 2011-12 to FY 2013-14 (relevant to AY 2012- 13 to AY 2014-15) (i.e. APA years). A signed copy of the said APA Agreement is enclosed for your Honours' ready reference (Refer Page No. 18 to Page No. 62). Bobst India wishes to draw your Honour's kind attention to Rule 10RA of the Income Tax Rules, 1962 ('the Rules '), wherein it is stated that, "If any appeal filed by the applicant is pending before the Commissioner (Appeals), Appellate Tribunal or the High Court for a rollback year, on the issue which is the subject matter of the rollback provision for that year, the said appeal to the extent of the subject covered under the agreement shall be withdrawn by the applicant before furnishing the modified return for the said year".

Further, Bobst India wishes to draw your Honours' kind attention to Section 92CD (1) of the Act which reads as, "Notwithstanding anything to the contrary contained in section 139, where any person has entered into an agreement and prior to the date of entering into the agreement, any return of income has been furnished under the provisions of section 139 for any assessment year relevant to a previous year to which such agreement applies, such person shall furnish, within a period o(three months from the end o(the month in which the said agreement was entered into, a modified return in accordance with and limited to the agreement".

In view of the above, in case of Bobst India, the date of entering into the UAPA is 04 October 2019. Accordingly, as per the provisions of section 92CD(1), the last date for filing of modified return for the years for which the return of income were filed before the date of entering into UAPA (i.e for FY 2011- 12 to FY 2017-18) is 31 January 2020.

3 M/s. Bobst India Private Limited A.Yrs. 2012-13 to 2014-15

As per the provisions of Rule 10RA of the Rules and with regard to the appeals which are pending before your Honours, the issue in the said appeals raised through various grounds is the transfer pricing adjustment made by the learned Transfer Pricing Officer ('TPO') by disturbing the Arm's Length Price ('ALP'). The said adjustment was upheld by the Hon'ble Dispute Resolution Panel ('DRP') and consequently finalized by the learned Assessing Officer ('AO'). The similar issue is dealt with under UAPA wherein the ALP has been determined in advance by taking into consideration the functional analysis and risk profile of Bobst India. Bobst India wishes to state that there is no other issue in the years under consideration which is pending before your Honours and not covered by the UAPA.

It may be noted that the issue covered under the said appeals relates to the international transaction pertaining to receipt of commission from marketing of machines vis-a-vis receipt of commission from marketing of spares. The said issue is covered in the UAPA as 'Accrual/receipt of commission from AEs for marketing machines and spares' in the table 'Covered transaction' (Refer Page No. 27 - Sr No. 13) as well as in the table 'Most Appropriate Transfer Pricing Method and ALP' (Refer Page No. 28 and Page No. 29 - Sr. No. 13).

Further, for the sake of reference and convenience, the Assessee wishes to submit that the Hon'ble Pune ITAT has, in the case of Dar Al Handasah Consultants (Shair & Partners) India Pvt. Ltd., permitted withdrawal of Assessee's appeal in view of Rule 10RA of the Rules. Copy of order of the Hon'ble Pune ITAT is enclosed (Refer Page No. 63 to Page No. 65), for your Honours' convenience and reference. The copy of Rule 10RA is also attached at Page No. 66. In view of the above discussion, since the appeals filed for AY 2012-13, AY 2013-14 and AY 2014-15, have to be withdrawn before filing the modified return of those years, Bobst India submits before your Honours that the said appeals needs to be withdrawn, and accordingly requests your Honours to pass appropriate order/ direction to give effect to the same.”

3.

On perusal of the above letter and having no objection from

the side of ld. DR, we allow the request of the assessee to withdraw

the appeals.

4 M/s. Bobst India Private Limited A.Yrs. 2012-13 to 2014-15

4.

In the result, all the appeals of the assessee are dismissed as

‘withdrawn’.

Order pronounced in the Open Court on 19th November, 2019.

Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 19th November, 2019 सतीश आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to: अ�ेिषत आदेश आदेश आदेश अपीलाथ� / The Appellant; 1. 2. ��यथ� / The Respondent; 3. The CIT(A)-13, Pune 4. The Pr.CIT-V, Pune िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे 5. “सी” / DR ‘C’, ITAT, Pune; 6. गाड� फाईल / Guard file. आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार आदेशानुसार // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

M/s. Bobst India Private Limited A.Yrs. 2012-13 to 2014-15

Date 1. Draft dictated on 18-11-2019 Sr.PS 2. Draft placed before author 18-11-2019 Sr.PS 3. Draft proposed & placed JM before the second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *

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