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Income Tax Appellate Tribunal, Hyderabad ‘ A ‘ Bench, Hyderabad
Before: Smt. P. Madhavi Devi & Shri S.Rifaur Rahman
Per Smt. P. Madhavi Devi, J.M.
The Revenue’s appeal as well as the cross objection of the assessee are against the final assessment order passed u/s 143(3) r.w.s. 147 and 144C of the Act. At the time of hearing, the learned DR has brought to our notice the letter of the AO dated 10.08.2017 stating as follows:
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ITA No 111 of 2016 and CO 19 of 2017 Wells Fargo India P Ltd Hyderabad.
“ Office of the Dy. Commissioner of Income-tax Circle-17(2), Hyderabad TOP PRIORITY / / ITAT MATIER By Fax: 040-23465944/46 DCIT/Cir.17(2)/2016-17 Date: 10-08-2017 To The Commissioner of Income Tax (DR), 'A'Bench, Room No.601, CGO Towers, Kavadiguda, Hvderabad,
Sir, Sub: Appeal filed by the Deptt. Against the order of DRP in the case of M/s. Wells Fargo Solutions Pvt Ltd for A.Y 2011-12 – Withdrawal of appeal – reg. Ref: 1. ITA NO.ll1/H/16 2. CIT (DR)'s letter dated 07-08-2017 addressed to Pr. CIT-5, Hyderabad
Kindly refer to the above.
As requested in the reference 2nd cited, the factual position with regard to APA between the CBDT and the assessee for the AY 2011-12 has been verified and it is to communicate the following points:-
(i) , The only addition proposed in the Draft Assessment Order (which was quashed by the Hon'ble DRP) was on account of Transfer Pricing adjustment.
(ii) Assessment Year 2011-12 is forming part of the Roll Back Years to which the Advance Pricing Agreement (APA) between the assessee and the CBDT and the same is applicable.
(iii) As per Para No.6 of the Advance Pricing Agreement dated 24-11-2015 the Arm's Length Price for Advance Pricing Agreement years and Roll Back years shall be the Operating Profit Margin of not less than 18%.
(iv) As seen from the letter of DCIT, (TPO)-3, Hyderabad dated 02-08- 2017, the assessee complied with the margin agreed in Advance Pricing Adjustment of 18% for the AY 201112, in contrast to the observation made by the then DCIT (TPO)-3, Hyderabad in a letter dated 21-12~2016 to the effect that the assessee company worked out the margin only at 17.18%.
(v}. In view of the above facts, ground NO.2 of the appeal taken regarding the legality of the DRP order has become purely academic without any revenue implication . Hence, the Revenue’s appeal in the case of Wells Fargo Solutions Pvt Ltd for the A.Y 2011-12 may be withdrawn/not pursued in accordance with Rule 10RA(5) r.w.s. 92CC & 92CD of the I.T. Act, 1961. A copy of TPO-3’s letter is enclosed for kind perusal. Yours faithfully
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ITA No 111 of 2016 and CO 19 of 2017 Wells Fargo India P Ltd Hyderabad.
Sd/- (B.Sunil Kumar) Dy.CIT, Circle 17(2) Hyderabad” 2. Taking the same into consideration, the Revenue’s appeal is dismissed as withdrawn. 3. The assessee has also filed letter dated 2nd August, 2017 seeking permission to withdraw the cross objection. Since the Revenue’s appeal is already dismissed, the cross objection is also dismissed as withdrawn. 4. In the result, appeal of the Revenue as well as the Cross Objection of the assessee are dismissed as withdrawn.
Order pronounced in the Open Court on 9th April, 2018.
Sd/- Sd/- (S.Rifaur Rahman) (P. Madhavi Devi) Accountant Member Judicial Member
Hyderabad, dated 9th April 2018. Vinodan/sps
Copy to:
1 Dy.CIT, Circle 17(2) 6th Floor, B Block IT Towers, AC Guards, Hyderabad 2 M/s. Wells Fargo India Solutions Ltd, Wells Fargo Centre, Building No.1A, Divyashree NSL SEX, Survey No.66/1, Raidurg Village, Serilingampally Mandal, Hyderabad 500032 3 DRP-1, G-16, Ground Floor, Central Revenue Buildings, Queens Road, Bengaluru 560001 4 Pr. CIT – 5, Hyderabad 5 The DR, ITAT Hyderabad 6 Guard File
By Order
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