JOHN DEERE EQUIPMENT PVT.LTD,PUNE vs. ASSISTANT COMMISSIONER OF INCOME TAX, PUNE

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ITA 1256/PUN/2017Status: DisposedITAT Pune22 July 2019AY 2007-084 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal decided to delete the disallowance made by the AO and the enhancement made by the CIT(A). This decision followed the view taken in a similar, previously argued case.

What were the facts?

The assessee appealed against the disallowance of payments made for IT software licenses, internet access, IT support, web-based training, and expatriate salary reimbursement. The appeal was similar to another case involving John Deere India Pvt. Ltd.

What were the issues?

Whether payments made for IT software licenses, internet access, IT support, web-based training, and expatriate salary reimbursement were disallowable under Section 40(a)(i) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 40(a)(i)

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 Nikhil Pathak &, Ms. Sukhada Choudhary
For Respondent: Shri Sardar Singh Meena, CIT

PER PARTHA SARATHI CHAUDHURY, JM :

This appeal by the assessee is directed against the order passed by the Commissioner of Income-tax (Appeals) on 15-03-2017 in relation to the assessment year 2007-08.

2.

The first ground about initiation of re-assessment proceedings was not pressed by the ld. AR. The same is hereby dismissed.

2 ITA No.1256/PUN/2017 John Deere Equipment Pvt. Ltd.,

3.

The other grounds are against the confirmation of

disallowance of Rs.96,04,464/- in respect of payments made by the

assessee to Deere & Co., USA towards I.T. software licenses,

internet access charges and I.T. support services; and further

Rs.5,25,48,347/- towards enhancement made by the ld. CIT(A) in

respect of Payment made on account of web based training and

Reimbursement of expatriate salary.

4.

We have heard both the sides and gone through the relevant

material on record. Both sides are in agreement that the facts and circumstances of this appeal are mutatis mutandis similar to those of

John Deere India Pvt. Ltd. (ITA No.1254/PUN/2017), which was

separately argued by the rival parties. In fact, no separate

submissions were advanced by the either side and the arguments

made for John Deere India Pvt. Ltd. were adopted for the instant

appeal as well. We have passed a separate order today in the case

of John Deere India Pvt. Ltd. (ITA No.1254/PUN/2017). Following

our view taken in the above referred case, we order to delete the

disallowance made u/s.40(a)(i) of the Act made by the AO as well

as enhancement made in the first appeal.

3 ITA No.1256/PUN/2017 John Deere Equipment Pvt. Ltd.,

5.

In the result, the appeal is partly allowed. Order pronounced in the Open Court on 22nd July, 2019.

Sd/- Sd/- (R.S.SYAL) (PARTHA SARATHI CHAUDHURY) VICE PRESIDENT JUDICIAL MEMBER पुणे Pune; �दनांक Dated : 22nd July, 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. ��यथ� / The Respondent; 2. 3. The CIT(A)-7, Pune 4. The Pr.CIT-6, 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

ITA No.1256/PUN/2017 John Deere Equipment Pvt. Ltd.,

Date 1. Draft dictated on 22-07-2019 Sr.PS 2. Draft placed before author 22-07-2019 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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